American International Group is giving a Chinese-based groupuntil the end of July to come up with the money needed tocomplete a deal to give their investors 90 percent control of AIG'sairplane leasing unit.

AIG agreed in December to sell control of the business,International Lease Finance Corp., in December to a consortium ofNew China Trust Co., China Aviation Industrial Fund and P3Investments Ltd.

The revised deal does give AIG the power to consider a publicoffering and to engage in talks with other potential acquirers forthe business during the extension period.

The implication is that AIG is committed to divesting control ofthe leasing unit as soon as possible.

Under the original deal, the consortium agreed to pay $4.23billion for r to buy 80.1% of ILFC for $4.23 billion.

The agreement included an option to sell an additional 9.9%stake and expand the ownership to include New China Life InsuranceCo. and an investment arm of ICBC International.

AIG and the potential acquirer have not disclosed whetherall of the original purchasers are still part of the deal.

The deal has been in limbo since AIG disclosed in early Junethat the consortium had not complied with a provision requiringdeposit of 10 percent earnings money by the end of May.

But the payment was made a week later, and the deal wasscheduled to close on June 14.

In comments at its recent May earnings conference, RobertBenmosche, AIG president and CEO, said AIG is committed to sellingthe leasing unit because it would have the effect of reducing AIG'scapital needs, as well as reducing the cost of financing thecompany.

The SEC filing said the amendment contract allows AIG toterminate the deal if it determines that needed regulatoryapprovals won't be met by the end of July.

Analysts noted that the companies hadn't previously disclosedwhat regulatory approvals of the deal are lacking.