HNA unit CWT International defaults on $179 million loan, faces asset seizure

HONG KONG (Reuters) – CWT Intercontinental Ltd, a gadget of indebted HNA Team Co Ltd, on Tuesday stated it defaulted on a HK$one particular.4 billion ($179 million) home loan, and that it has a ton significantly less than 24 hrs to shell out hard cash owing or drop possessions pledged as collateral.

FILE Photograph: The HNA Team emblem is considered on the gate of HNA Plaza developing in Beijing, China July 4, 2018. REUTERS/Elias Glenn

CWT, in a submitting to the Hong Kong stock trade, stated it has not compensated accrued fascination and expenditures value HK$63 million to bank loan providers, who will get possession of the possessions if the quantity owing is not compensated by nine AM (0100 GMT) on Wednesday.

Amid possessions pledged is wholly owned CWT Pte Ltd, a keeping small business for HNA’s commodity advertising and marketing, engineering, finance and logistics providers. Other possessions pledged include properties in Britain and the United States and golfing programs in China.

Just one particular property, seventeen Columbus Courtyard in London’s Canary Wharf improvement – with tenants which involves Credit score score Suisse Team AG – was obtained in July 2016 for 131 million kilos ($172 million). In 2018, it was on sale with a selling price of HK$one particular.a few billion ($166 million).

CWT Intercontinental, which operates in 90 nations all over the globe, also owns a portfolio of golfing programs in the U.S. city of Seattle, stock trade filings confirmed.

The Chinese aviation-to-economic providers conglomerate obtained the Singapore-largely centered small business for $one particular billion in December 2017 by usually means of wholly owned subsidiary HNA Belt and Road Investments Singapore. It then merged the small business with a man or woman of its Hong Kong-outlined products and named the ensuing entity CWT Intercontinental.

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Simply because late ultimate calendar year, HNA has been in talks with financial institutions to appear throughout a client for CWT, as it divests possessions to shell out off credit score card personal debt.

HNA declined to remark on Tuesday.

CWT’s possessions were being value HK$24.6 billion at the conclude of 2018, when it posted a reduction of HK$557.a few million. Late ultimate thirty day period, it stated it would be not able to repay the borrowed HK$one particular.4 billion in overall as scheduled in Oct besides if it sells possessions – which it stated has been hard – or refinances the home loan.

Investing of CWT shares has been suspended thanks to the point April 10.

Reporting by Kane Wu Excess reporting by Jennifer Hughes Improving by Christopher Cushing

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