The American International Group Inc had revived plans for an initial public offer of its plane leasing unit. This decision comes after the insurer had extended its deadline to accomodate a group of Chinese investors to purchase the business.

The International Lease Finance Corp, AIG's plane business unit, had updated its registration statement for a future IPO. The insurer based out of New York had initially put the IPO plan in the freezer after it had struck a deal to sell 80% of ILFC to a consortium led by New China Trust Co.'s Chairman Weng Xianding for a price tag of US$4.2 billion.

According to the documents filed, "If AIG Capital completes the sale of ILFC's common stock to the purchaser, we will not proceed with the offering of ILFC shares."

AIG had been granted a second extension to the purchasing group this week. It said it has until July 31 to complete the transaction. The deadline had been rescheduled from May 14 to June 14. One of the terms included in the extension would be the right to pursue other offers or do preparations for an IPO.