Hong Kong Airlines and shareholder sued by HNA over HK$1b in alleged debt
06/24/2019|3:31:06 PM|SCMP

Hong Kong Airlines and its shareholder are being sued by HNA Group, the Chinese conglomerate, over as much as HK$1.17 billion in debt, as another legal battle looms for the city’s troubled carrier.

In court filing on Thursday, HNA Group (Hong Kong) Investment accused Hong Kong Airlines Consultation Service Co Limited for failing to repay two promissory notes – one for HK$385 million (US$49.2 million) issued February 2010 and another for HK$390 million issued in June 2013.

In a separate lawsuit, HNA sued Hong Kong Airlines Holdings Co Limited, saying that the company had failed to pay back a promissory note for another HK$390 million.

The lawsuits are among a wave of court actions facing Hong Kong Airlines and its shareholders, including a legal battle over that could determine who controls the city’s third-biggest carrier.

Also on June 20, the accounting firm Deloitte & Touche Financial Advisory Services PTE Ltd filed a separate lawsuit against two HNA-linked companies to claim at least HK$6.3 million in debt.

Taken as a whole, the lawsuits add to the complex backdrop for the boardroom fight for Hong Kong Airlines.

In its court filing, Deloitte & Touche argued that HNA Group (International) Company and HNA Innovation Finance Group had failed to repay HK$6.3 million for its due diligence service.

The accounting firm said a court in Singapore had already ruled in its favour, but the two HNA-linked firms had yet to pay up. It is seeking the unpaid sum, plus interest and the legal fees for the Singaporean case.

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