Deals

HNA Rules Out Default in Coming Years After Yield Surge

  • Board director says group has healthy, stable debt structure
  • The conglomerate’s short-term debt exceeds its cash pile
Pedestrians walk past the HNA Group Co. building in Beijing, China, on Wednesday, Aug. 9, 2017. Big Chinese dealmakers including HNA have been under increasing scrutiny this year as the Communist Party steps up its clampdown of capital outflows to protect the yuan from weakening further.Photographer: Qilai Shen/Bloomberg
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The debt-laden Chinese conglomerate HNA Group Co., whose airline unit scrapped a bond fundraising plan this week after financing costs soared, said it won’t default on borrowings anytime soon.

Board director Zhao Quan said in an interview Friday that there would be no default in the coming year, when asked about risks in that period, without commenting on the longer-term outlook. The company doesn’t see any default risk in coming years, it said in response to a follow-up question.