AIG (AIG) Having A Difficult Time Selling Its Aircraft Leasing Business

It appears that American International Group's (NYSE: AIG) is having a tough time selling its massive aircraft-leasing business. The NY Post reported that it is running into headwinds and may need a little extra help, courtesy of Uncle Sam, in order to complete a deal.

The rumor is that potential buyers are demanding a bigger guarantee from the federal government in order to facilitate the sale. The government has agreed to guarantee $5 billion of debt, but those remaining in the auction now want either more government aid or support from airline manufacturers, according to the Post.

A second source told the Post that the guarantee issue has hindered the auction process, which appears to have cooled as AIG tries to sort out how to make a sale happen.

AIG has been trying to sell the aircraft-leasing business (the unit has a book value of $7.5 billion) for quite awhile, in an effort to pay back some of the government loans.

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