The plans for a possible initial public offer would be carried out, according to American International Group Inc. The IPO would be for its plane leasing unit and would be done should the plan to sell the unit to a consortium of Chinese investors does not follow through to completion.

An updated filing was submitted by AIG's International Lease Finance Group that cover the period through June 30. Included in the information filed would be the company's plane fleet unit that is based out of Los Angeles, CA. The sale of the business has been delayed because of the failure to complete a deal with prospective buyers.

According to the ILFC filing, as of yesterday,no transactions have been closed. It also said that the IPO application would be withdrawn if AIG would be able to complete a sale agreement.

The move is in line with AIG's goals of simplifying its business. Its main prospect, the Chinese consortium, had already missed three target dates for the completion of the purchase, the latest of which was the end of July. There was a preliminary agreement entered last December with the provision that payment of about USD4.2 billion would be given in exchange for an 80% stake in ILFC.

AIG spokesperson Jon Diat declined to make any comment on the matter.