HNA unit offers airline vouchers instead of cash to repay investors
The flights can be for both domestic and overseas travel and are valid for five years.
A financing platform under HNA Group is offering investors air tickets rather than cash as repayment, the latest sign of the financial stress the Chinese conglomerate is under despite a slew of asset sales.
Shenzhen-based Qianhai Air & Shipping Exchange that sells wealth management products to retail investors online, is offering tickets from Hainan Airlines or Grand China Air to repay what it owes, it said in a statement. The flights can be for both domestic and overseas travel and are valid for five years.
The offer highlights the continuing pressure HNA Group faces as it struggles to reduce one of China’s biggest piles of debt. It has agreed to sell more than USD 22 billion in properties and shares this year to stay in business. Its unit HNA Innovation failed to repay 300 million yuan (USD 43.2 million) of trust loans due September 10.
The flight packages are worth 5,000 yuan (USD 719) for investors meant as repayment for their investments. Last week, a pork producer came up with an innovative way to repay its debt. Chuying Agro-Pastoral Group said holders of 271 million yuan of its debt agreed to take ham or pork gift packages instead of interest payments.
Read Original Article