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Beijing extends lifeline to HNA Group
June 22nd 2018
The Chinese government in Beijing has agreed to help debt-ridden HNA Group raise much needed funds, Bloomberg has reported, citing people involved in the negotiations. Read More »
Last week, HNA chairman, Chen Feng, and representatives from the Hainan provincial government met with senior officials from the People's Bank of China and representatives of the China Banking and Insurance Regulatory Commission, the National Association of Financial Market Institutional Investors, the State Administration of Foreign Exchange and China Development Bank.
After the meeting, the People’s Bank of China asked the other banks and creditors present to support HNA's future bond issues, Bloomberg reported. China’s top financial institution also requested HNA stop diversifying through acquisitions and refocus on its core business of travel and hospitality.
The Chinese conglomerate, which commenced life as a single carrier on the southern Chinese island of Hainan more than 30 years ago, controls nine Chinese and two Hong Kong airlines. They are: Hong Kong Airlines and HK Express, Hainan Airlines, Air Chang’an, Beijing Capital Airlines, Fuzhou Airlines, Guangxi Beibu Gulf Airlines, Lucky Air, Urumqi Air and West Air. Since the beginning of the year, HNA has been selling assets and holdings to repay loans falling due this year.
