Credit crunch, AIG and ILFC

JF Mezei

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Sep 16, 2008, 2:41:36 AM9/16/08

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FYI, ILFC, one of the biggest (if not the biggest) aircraft lessors is
part of the AIG group. AIG group is now in trouble and there are rumours
circulating it might follow Lehman Brothers.

Couple months ago, I read a news snippet from Steven Udvar Hazy (big
cheese at ILFC) stating that ILFC was safe within AIG.

It appears that the governor of New York has now allowed AIG to dig into
finances of its subsidiaries to extract much needed cash. Not known
how/if this will impact ILFC. However, what may impact ILFC is AIG's
declining credit rating which may make it harder for ILFC to get cash to
buy new aircraft.

Something to keep an eye on.
.
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John Levine

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Sep 16, 2008, 6:19:59 AM9/16/08

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>Couple months ago, I read a news snippet from Steven Udvar Hazy (big
>cheese at ILFC) stating that ILFC was safe within AIG.

News reports I've seen in recent days say that AIG is going to spin
off or sell ILFC. If they don't, ILFC's credit rating will tank with
the rest of AIG, which would be bad news all around.

http://money.cnn.com/news/newsfeeds/articles/djf500/200809151707DOWJONESDJONLINE000735_FORTUNE5.htm

JF Mezei

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Sep 19, 2008, 4:06:33 AM9/19/08

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John Levine wrote:

> News reports I've seen in recent days say that AIG is going to spin
> off or sell ILFC. If they don't, ILFC's credit rating will tank with
> the rest of AIG, which would be bad news all around.

Reuters reported on thursday that ILFC is now officially up for sale.
It has also exercised its credit line options to the tune of 6 billion
dollard in order to give it cash for the next few months. (I guess
better widthdraw the money now before the line of credit might be
affected by either the parent's woes or the potential buyer.

I have seen some media discussion on potential buyers. Sovereign funds
seem to be the only ones at the moment with enough cash to buy ILFC. So
that mean China, Singapore, middle east.
.

JF Mezei

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Sep 22, 2008, 11:26:57 PM9/22/08

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Interesting article on Udvar-Hazy and ILFC:

http://www.reuters.com/articlePrint?articleId=INN1939170720080919

ILFC agreed to become part of AIG because it could draw on AIG's
impeccable credit rating to buy aircraft. But with AIG no longer having
any credit rating, ILFC is in a tough bind.

Started in 1972 with $500,000 in capital, and in 1990, sold it to AIG
for 1.3 billion.

A Guy Called Tyketto

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Sep 23, 2008, 3:13:27 AM9/23/08

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JF Mezei <jfmezei...@vaxination.ca> wrote:
> Interesting article on Udvar-Hazy and ILFC:
>
> http://www.reuters.com/articlePrint?articleId=INN1939170720080919
>
> ILFC agreed to become part of AIG because it could draw on AIG's
> impeccable credit rating to buy aircraft. But with AIG no longer having
> any credit rating, ILFC is in a tough bind.
>
> Started in 1972 with $500,000 in capital, and in 1990, sold it to AIG
> for 1.3 billion.

So let me get this straight. If ILFC can't make a payment on
the aircraft it has 'purchased' from
Boeing/Airbus/Embraer/Bombardier/whomever, does that mean that Boeing
et. al. can repo the planes from the airlines that leased the plane
from ILFC?

BL.
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Unix Systems Administrator, | tyk...@ozemail.com.au
Web + NewsMaster, BOFH.. Smeghead! :) | http://www.wizard.com/~tyketto
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