Leader of group looking to buy AIG's ILFC pulled out in May

|By:, SA News Editor

New China Trust, which was the leader of the consortium that has agreed to acquire AIG's (AIG) aircraft-leasing business, reportedly withdrew from the $4.2B deal in May due to fears that New China's ties to the country's National Development & Reform Commission would cause a conflict of interests.

The exit prompted other investors to pull out of the deal to buy International Lease Finance Corp. (ILFC) and made it difficult for the group to finance the deal. So far, it's raised $2.6B and missed three deadlines to make payments. The next one is due at the end of the month.