Banks That Funded HNA's $40 Billion Spending Spree Halt New Loans
- Dealmaking conglomerate has reported $73 billion of debt
- HNA bonds are slumping as scrutiny of finances intensifies
Several Chinese banks that helped fund HNA Group Co.’s global acquisition spree are losing their appetite for financing the company, according to people familiar with the matter.
Three of the banks have decided to stop extending new loans to HNA, said the people, who asked not to be identified because the information is private. One made the decision early this year, the second acted a couple of months ago and the third moved recently, the people said. A fourth bank trimmed its exposure to the company over the past few months and reduced the size of a credit line, one of the people said, without providing further details. The four lenders were among the eight largest providers of credit lines to HNA as of 2015, according to the latest publicly-disclosed figures.