NEW YORK (
American International Group
is finally repaying some of its debt -- at least the $2 billion owed for its jet-leasing unit.
The flailing insurer will repay the short-term debt for
International Lease Finance
, which is due today, the
Wall Street Journal
, doing business with
The unit is a cash cow for AIG, earning $703.1 million in 2008, a 16% increase from the year prior. But ILFC is on the chopping block and AIG is having trouble getting rid of the asset, as it comes with about $32 billion in debt.
Earlier this week,
reported that there could be a potential buyer for a small piece of ILFC, led by CEO Steven Udvar-Hazy.
Also earlier in the week, AIG made its biggest sale of an asset since it began shedding its pieces in an effort to repay its $85 billion loan from the government. AIG sold its Taiwan life insurance unit, Nan Shan, for $2.15 billion.
-- Reported by Jeanine Poggi in New York
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