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HNA Liquidity in Question as Citic Bank Cites Repayment ‘Issues'

  • HNA Aviation Group having repayment difficulties, Citic says
  • HNA director said Dec. 8 that debt structure was healthy
Bloomberg business news
Bloomberg’s Prudence Ho reports on the warning from Citic regarding a unit of debt-laden HNA.(Source: Bloomberg)
Updated on

Citic Bank Corp. said a unit of HNA Group Co. is having difficulty repaying certain short-term debts, just over a week after the Chinese conglomerate said it won’t default in the coming year.

HNA Aviation Group Co. has had trouble paying bankers’ acceptances -- debt instruments that mature in the short term -- and Citic Bank is working with HNA Group to try to resolve the situation, the Chinese lender said in a statement sent exclusively to Bloomberg News this weekend. The group has several bonds and loans from multiple banks maturing at similar times, causing a “temporary liquidity” issue, Citic Bank said.