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S V Choong

HNA's problems mount as airlines delay payments, bank sets up team to handle debt: sources

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https://www.reuters.com/article/us-hna-group-debt/hnas-problems-mount-as-airlines-delay-payments-bank-sets-up-team-to-handle-debt-sources-idUSKBN1F40M5?il=0

 

 

 

HANGHAI/SINGAPORE (Reuters) - Some airlines affiliated with China’s HNA Group Co Ltd are delaying aircraft lease payments to lessors, and Export-Import Bank of China, which is a long-term financer of the group, has formed a team to handle the conglomerate’s liquidity issues, several banking and leasing sources said.

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China Development Bank supervising HNA asset sales

 

HONG KONG/BEIJING (Reuters) - China Development Bank (CDB) is leading a team to supervise HNA Group’s asset disposals as the heavily indebted conglomerate scales back operations to a point that will leave it holding only core assets, people familiar with the situation said.

 

The finance-to-aviation group is more than a year into the process of unwinding a $50 billion acquisition spree that at its peak netted the group stakes in banks, fund managers, hotels, property and airlines, among other assets.
Faced with soaring debts and China’s crackdown on aggressive dealmaking firms, HNA has pushed ahead with asset sales that have so far included real estate, stakes in hotels groups and discussions on key overseas units such as Ingram Micro and its luxury $300-million-plus corporate “Dream Jet”.

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The Hong Kong government is assessing the potential fallout from the possible collapse of the city’s third largest airline during the coming Lunar New Year peak travel period, with the authorities considering putting together a contingency plan, according to two sources with knowledge of the review.

 

https://www.scmp.com/news/hong-kong/transport/article/2181275/hong-kong-airlines-government-considers-contingency-plan

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That's what happened if you are a Chinese citizen or Chinese business. Government intervention and you cannot thrive as an individual - The Chinese Government come and meddle with your business, you have no say in what-so-ever..... if your business grow large enough, government will come knocking on your door and ask you to share and redistribute your wealth for the "poor". Or if the government policy changed - sorry, you will have to derail your original plan and work according to the new government policy. Sorry, it's socialism we are talking about.

 

Another thing is that the Chinese were too quick on buying up assets previously, even those who may not be making profit or economic sense. I believe it was also a government policy to acquire "foreign expertise" through purchasing of foreign business hoping for technological transfer. Now that the government policy has changed, many are forced to sell out or liquidate their assets.

 

If I am a Taiwanese, I am really in no hurry to "return to the motherland"....

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That's what happened if you are a Chinese citizen or Chinese business. Government intervention and you cannot thrive as an individual - The Chinese Government come and meddle with your business, you have no say in what-so-ever..... if your business grow large enough, government will come knocking on your door and ask you to share and redistribute your wealth for the "poor". Or if the government policy changed - sorry, you will have to derail your original plan and work according to the new government policy. Sorry, it's socialism we are talking about.

 

Another thing is that the Chinese were too quick on buying up assets previously, even those who may not be making profit or economic sense. I believe it was also a government policy to acquire "foreign expertise" through purchasing of foreign business hoping for technological transfer. Now that the government policy has changed, many are forced to sell out or liquidate their assets.

 

If I am a Taiwanese, I am really in no hurry to "return to the motherland"....

 

Chinese businesses and economy is pretty much controlled and dictated by cpc.

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Cathay Pacific Airways has agreed a deal to acquire budget airline HK Express, according to sources familiar with the matter.

Hong Kong’s biggest airline is poised to make a formal announcement as early as Tuesday, though the sources did not elaborate on the agreement between the two sides, including the financial terms.




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