Debt-ridden Chinese conglomerate HNA has reportedly defaulted on a Rmb300 million ($44 million) loan owed to a trust company, according to the Financial Times, prompting the lender to threaten an asset freeze.
Hunan Trust told its investors on Thursday that “despite multiple attempts to communicate with HNA by phone or meet in person,” the aviation-based conglomerate had failed to repay the loan, which matured on September the 10th.
The recipient and guarantor of the loan were subsidiaries HNA Innovation and HNA Tourism, respectively, assets of which Hunan Trust said it will now look to freeze.
HNA has been in shaving off weight from its extensive, debt-fuelled portfolio, after fears arose earlier this year surrounding the company’s liquidity. Despite shedding around $18 billion in assets so far this year, starting from August, HNA announced its first default regarding its P2P lending business.
Due to the size and scope of HNA’s operations, the company is currently under tight supervision and guidance from state-run lending institutions.