AIG aircraft unit seeks $5bn Fed credit line

"AIG’s aircraft-leasing unit is in talks over a $5bn credit line from the Federal Reserve that could be used to facilitate its sale – an unusual move that would raise the stakes in the US government’s bail-out of the stricken insurer. People close to the situation said discussions between International Lease Finance Corp, AIG and the New York Fed were still ongoing and no decision on whether the facility would be provided, and how big it would be, had yet been taken. ILFC, a profitable company and a top customer to both Boeing and Airbus, is in advanced talks with three private equity consortia but it needs extra liquidity because AIG’s collapse has choked off many of its traditional sources of funds. A bitter downturn in demand for air travel has made the task of raising extra funding even more daunting." Next.