HNA Unit Sells Dorian Stake at Loss as Debt Pressure IntensifiesBy
HNA Investment sells 6.4 million shares in the shipping firm
Sale comes as Chinese group comes under intensifying pressure
A unit of debt-laden HNA Group Co. sold its stake in a U.S. shipping company at a loss as pressure intensifies for the Chinese conglomerate to repay its mounting debts.
HNA Investment Management LLC sold 6.4 million shares, or 12 percent, of Dorian LPG Ltd. at $7.30 apiece on Friday, according to a filing with the U.S. Securities and Exchange Commission Tuesday. According to data compiled by Bloomberg, HNA bought Dorian shares at an average cost of $12.27, signaling the Chinese conglomerate lost more than $30 million on the sale.
HNA has been selling assets after it spent tens of billions dollars on a debt-fueled acquisition spree to snap up assets such as stakes in Deutsche Bank AG and Hilton Worldwide Holdings Inc. The Chinese group told creditors it faces a potential liquidity shortfall of at least 15 billion yuan ($2.4 billion) in the first quarter, people familiar with the matter have said.