HNA unit CWT Intl faces asset seizure after default on $179 mln loan

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HONG KONG, April 16 (Reuters) – Chinese conglomerate HNA Group Co Ltd could lose assets in Hong Kong-listed unit CWT International Ltd after CWT defaulted on a HK$1.4 billion ($178.56 million) loan, the company said in a stock exchange filing on Tuesday.

CWT said it failed to pay accrued interest and certain fees worth HK$63 million to lenders, who would enforce security and take possession of all charged assets if the amounts are not repaid by 9 AM (0100 GMT) on Wednesday.

Security pledged to the loan facility include CWT Pte Ltd, a wholly owned subsidiary of CWT International that holds the group’s logistics services, commodity marketing, engineering services and financial services businesses. The security also includes CWT International’s investment in properties in Britain and the United States, and golf courses in China.

HNA did not immediately respond to a request for comment. CWT International shares have been suspended since April 10.

Aviation-to-financial services conglomerate HNA completed the acquisition of Singapore-based CWT in December 2017 via wholly owned subsidiary HNA Belt and Road Investments Singapore.

The CWT business, spread across 90 countries, was folded into one of HNA’s listed units in Hong Kong that was renamed CWT International Ltd.

Since late last year, the group has been in talks with banks to find a buyer for the unit, as part of divestment efforts aimed at slashing debt. ($1 = 7.8406 Hong Kong dollars)

Reporting by Kane Wu; Editing by Christopher Cushing

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