China to manage HNA’s debt as virus pushes group over the edge

HNA is part of a group of Chinese giants that began making a splash internationally in the middle of last decade from near obscurity

BEIJING: China took over management of debt-laden HNA Group Co.’s liquidity risks after the coronavirus outbreak scared off travelers and cut off the conglomerate’s main source of income, forcing the government to take extraordinary steps to contain the fallout from the epidemic.

The government of Hainan, the southern island province where HNA is based, appointed an executive chairman for the company and set up a working group of officials from the municipality, the civil aviation authority and China Development Bank to oversee the effort, HNA said in a statement on Saturday. The move came after the conglomerate failed to resolve liquidity difficulties that stretch back to late 2017, it said.