American International Group is giving a Chinese-based group until the end of July to come up with the money needed to complete a deal to give their investors 90 percent control of AIG's airplane leasing unit.
AIG agreed in December to sell control of the business, International Lease Finance Corp., in December to a consortium of New China Trust Co., China Aviation Industrial Fund and P3 Investments Ltd.
The revised deal does give AIG the power to consider a public offering and to engage in talks with other potential acquirers for the business during the extension period.
The implication is that AIG is committed to divesting control of the leasing unit as soon as possible.
Under the original deal, the consortium agreed to pay $4.23 billion for r to buy 80.1% of ILFC for $4.23 billion.
The agreement included an option to sell an additional 9.9% stake and expand the ownership to include New China Life Insurance Co. and an investment arm of ICBC International.
AIG and the potential acquirer have not disclosed whether all of the original purchasers are still part of the deal.
The deal has been in limbo since AIG disclosed in early June that the consortium had not complied with a provision requiring deposit of 10 percent earnings money by the end of May.
But the payment was made a week later, and the deal was scheduled to close on June 14.
In comments at its recent May earnings conference, Robert Benmosche, AIG president and CEO, said AIG is committed to selling the leasing unit because it would have the effect of reducing AIG's capital needs, as well as reducing the cost of financing the company.
The SEC filing said the amendment contract allows AIG to terminate the deal if it determines that needed regulatory approvals won't be met by the end of July.
Analysts noted that the companies hadn't previously disclosed what regulatory approvals of the deal are lacking.
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