China’s HNA apologises to debtors for short notice on $163m bond plan

The HNA Group logo is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

Cash-strapped Chinese conglomerate HNA Group aplogised for the short notice it gave to debtors of a plan to negotiate a one-year debt moratorium for $163 million of its bonds.

HNA, which appealed for government help with its liquidity crisis two months ago, convened a conference call on Tuesday with all bondholders of its “13 HNA Bonds”, which are scheduled to mature on April 15.

Local media reported many bondholders were given only 30 minutes notice of the evening meeting, leaving many unhappy with the company. The result of the meeting was not known.

In a letter of apology published on its WeChat account late on Tuesday, the company said it had been negotiating with major investors on a one-year extension of the “13 HNA Bonds” as of April 14 and thus convened a conference call with all bondholders to vote for the plan on that day.

“Since the number of investors is huge, there were deficiencies in our work to notify the meeting and preparations,” HNA said in its letter. “We are deeply sorry for all investors for that,” it said.

HNA in February asked the provincial Hainan government to lead a work group aimed at resolving its increasing liquidity risks after a slowdown in business caused by the coronavirus outbreak.

The company, which directly owns or holds stakes in a number of local Chinese carriers, including Hainan Airlines, said it was not able to thoroughly deal with liquidity risks itself.

HNA issued the “13 HNA Bonds” on April 15, 2013 to raise 1.15 billion yuan ($163 million) with a term of seven years, according to the Shanghai Stock Exchange.

Reuters 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.