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The Catch-22 is that in order to sell the unit the company could need help from the government or a third-party lender because AIG agreed to help the buyer with financing. AIG does not have the funds to meet debt obligations for ILFC's operations in 2009 due to the struggling airline business and the loss of its federal commercial paper lending facility after key credit ratings cut. The insurer has committed to support the plane unit's short-term liquidity needs until a sale or the end of March 2010. In order to fulfill its obligations, it may need more government financing or a third party, according to Bloomberg. ILFC needs secured financing to fund contractual obligations through the end of April. The company said AIG has approved an additional $900 million loan to be provided by AIG Funding at the end of this month, subject to New York Federal Reserve consent, according to Reuters. ILFC has a book value of $7.5 billion as of Sept. 30, and bids could be around $5 billion. The auction is one of several the insurer is holding in order to pay back the government's $180 billion loan. Here are the latest reports on asset sale progress: Sold:
The sale of AIG's Alico, Philamlife unit and AIA were all scrapped after the government's last bailout. - Maria Woehr Also see: Ameriprise out of race for AIG Adviser unit
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Word is that American International Group Inc.'s (NYSE:AIG) aircraft leasing unit could get bids from three private equity groups. Thomas H. Lee Partners LP, Carlyle Group, and Greenbriar Equity Group LLC partnering with Onex Corp. could all bid for International Lease Finance Corp., or ILFC, in the auction's second round in April, according to a 
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