Private-equity honcho J. Christopher Flowers is considering buying billions of dollars worth of bad debt on the cheap from American International Group as the struggling insurance giant looks to offload its most toxic assets, The Post has learned. As The Post reported last week, AIG hired JPMorgan Chase to help it structure a deal in which the company would spin off its problem debt in a "good insurer/bad insurer" structure. Sources say a plan has not yet been cemented but Flowers' private-equity firm, J.C. Flowers & Co.,is backed by $4 billion in equity from China Investment Corp for the explicit purpose of investing in distressed bank assets. The Beijing-based sovereign wealth fund is said to have a pool of capital in the ballpark of $200 billion. Other private-equity investors are also considering purchasing some of AIG's so-called bad assets. Calls to Flowers and AIG were not returned.