The New York Federal Reserve has signed off on American International Group Inc.’s latest cash infusion for its aircraft leasing unit, a lifeline aimed at keeping it in business until it can be sold.
International Lease Finance Corp., one of the world’s largest buyers of airliners, had warned that a failure to come up with new loans from AIG or someone else could threaten its survival.
AIG had already loaned $800 million to the unit to cover its March spending. And on Thursday, ILFC Chief Financial Officer Alan Lund told the Associated Press that another $900 million AIG loan for April had been approved by the New York Federal Reserve. The money will be received on Monday; Lund said ILFC has $600 million in debt that will mature two days later.
ILFC said in a filing that AIG will continue to offer such loans until March 2010 or until the unit is sold, whichever comes first.
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