AIG on Friday said in a filing with the Securities and Exchange Commission that it hadn't received a 10% deposit by a May 30 deadline, as required under a December agreement to sell a majority stake in International Lease Financial Corporation (ILFC) to an investor group led by New China Trust.
AIG on Dec. 7 announced a deal to sell up to 90% of ILFC to the investor group, in a deal valuing the aircraft leasing unit at $5.28 billion. New China Trust and its investor partners agreed to purchase a stake of at least 80.1% of ILFC for $4.23 billion. An escrow deposit of 10%, or roughly $20 million, was due on Thursday and not received.
Under the terms of the agreement, AIG has the right to cancel the sale agreement, however, the company has not done so. An AIG spokesman declined to comment.AIG's shares were down over 2% to $45.19 in afternoon trading.
"Based on our brief discussion with
Nagel wrote "assuming the buyer makes the escrow deposit and the deal remains on track, today's announcement likely serves as nothing more than a short-term buying opportunity in the stock (all else equal)." But if AIG decides to look for another way to divest ILFC, which Benmosche calls a "non-core asset," investors may not see the capital return they expect from AIG this year.