'HNA's Kai Tak land deal may face credit squeeze' - RTHK
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'HNA's Kai Tak land deal may face credit squeeze'

2017-09-14 HKT 12:07
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  • HNA bagged four sites near the old airport for more than HK$27 billion. File photo: RTHK
    HNA bagged four sites near the old airport for more than HK$27 billion. File photo: RTHK
A report says mainland conglomerate HNA may have trouble in finding funds for its purchase of four plots of land in the Kai Tak area.

The company has bought four residential sites in Kai Tak for a total of more than HK$27 billion since late last year.

Quoting unnamed banking sources, Bloomberg said at least four banks have decided not to renew credit to the company and don't intend to extend fresh loans to fund the purchases and construction.

It said eight banks are known to have provided more than HK$11 billion between them in short-term funding to the company, and its first repayment deadline is in November.

But the report quoted HNA units involved in the Kai Tak projects as saying that things are proceeding smoothly.

Earlier this month, reports had emerged that the Hong Kong Monetary Authority had asked major lenders for details on their loans to HNA and another mainland conglomerate, Dalian Wanda Group.

The two conglomerates are being targeted by mainland regulators over their spree of takeovers overseas.