HNA Drama update 1


HNA Group Co. Chief Executive Officer Adam Tan said the Chinese conglomerate is considering selling assets, signaling the acquisitive company is caving in to government pressure by reversing a shopping spree that cost tens of billions of dollars and strained its finances. Assets that could be sold include buildings and holdings in industries where investment is being restricted by the Chinese government, Tan told a media gathering during a forum hosted by Caijing Magazine in Beijing on Tuesday. Disposals would help HNA — the top shareholder of Deutsche Bank AG and Hilton Worldwide Holdings Inc. — improve its liquidity and cash flow, he said.

The comments help illustrate how HNA, which in recent years emerged as one of China’s top acquirers of foreign assets, is falling in line with President Xi Jinping’s campaign to stem capital outflows. Asset disposals could also help the group pay off debt and reduce its interest expenses, which have climbed to levels higher than at any other non-financial company outside of the U.S and Brazil. As HNA’s assets grew, so did its debt and financing costs. In November, the group sold China’s most expensive short-term dollar bond ever and the conglomerate has also offered higher interest to secure a delay in repayment of a loan for a construction project near Hong Kong’s former airport.

“China’s most expensive bond ever” for this $170 billion assets company. Bonus fun 1: how many college seniors can name all the historical events depicted in this tune? Bonus fun 2: How did a member of the “Families of the Five Civilized Tribes: Cherokee, Chickasaw, Choctaw, Creek and Seminole,” wind up with a name like Pierre Franey?

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