HNA unit CWT International defaults on $179 million loan, faces asset seizure

HONG KONG (Reuters) – CWT World Ltd, a unit of indebted HNA Crew Co Ltd, on Tuesday claimed it defaulted on a HK$one.four billion ($179 million) mortgage loan, and that it has substantially much less than 24 several hours to devote cash many thanks or fall property pledged as collateral.

FILE Graphic: The HNA Crew brand name is witnessed on the gate of HNA Plaza building in Beijing, China July four, 2018. REUTERS/Elias Glenn

CWT, in a submitting to the Hong Kong stock trade, claimed it has not compensated accrued fascination and bills worth HK$63 million to creditors, who will get possession of the property if the overall many thanks is not compensated by nine AM (0100 GMT) on Wednesday.

Among property pledged is wholly owned CWT Pte Ltd, a preserving firm for HNA’s commodity world wide web promoting, engineering, finance and logistics corporations. Other property pledged include homes in Britain and the United States and golfing systems in China.

Just one distinct household, seventeen Columbus Courtyard in London’s Canary Wharf development – with tenants jointly with Credit history heritage Suisse Crew AG – was purchased in July 2016 for 131 million kilos ($172 million). In 2018, it was on sale with a advantage of HK$one.a few billion ($166 million).

CWT World, which operates in 90 nations close to the earth, also owns a portfolio of golfing systems in the U.S. town of Seattle, stock trade filings verified.

The Chinese aviation-to-financial corporations conglomerate purchased the Singapore-centered firm for $one billion in December 2017 by employing wholly owned subsidiary HNA Belt and Road Investments Singapore. It then merged the firm with 1 distinct of its Hong Kong-stated designs and named the ensuing entity CWT World.

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For the reason that late remaining calendar 12 months, HNA has been in talks with banking companies to find a buyer for CWT, as it divests property to devote off personalized personal debt.

HNA declined to remark on Tuesday.

CWT’s property have been worth HK$24.6 billion at the conclude of 2018, when it posted a drop of HK$557.a few million. Late remaining 30 working day time period, it claimed it would be not able to repay the borrowed HK$one.four billion in overall as scheduled in Oct besides if it sells property – which it claimed has been really hard – or refinances the mortgage loan.

Investing of CWT shares has been suspended specified that April 10.

Reporting by Kane Wu Supplemental reporting by Jennifer Hughes Modifying by Christopher Cushing

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