Panama shipper China Joy drags embattled HNA Group to court again, seeks liquidation of conglomerate
- A trial will be held in Hong Kong on August 26
- HNA has been a de facto ward of the Chinese government since February this year
Panama-based shipping company China Joy Shipping has filed another wind-up petition against embattled Chinese conglomerate HNA Group.
A trial will be held in Hong Kong on August 26, according to records available on the Hong Kong Judiciary’s website.
This is the second time China Joy has filed for liquidation at HNA, the first instance coming after a debt default in 2012. But the shipper withdrew its lawsuit from the High Court of Hong Kong in February 2013, after HNA promised that it would pay back the total outstanding amount of US$400,000.
The lawsuit comes as the debt-laden group continues to be hammered by the coronavirus pandemic. Its core aviation portfolio has been hit hard, with air traffic falling by more than 90 per cent globally in the past few months.
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Its Hainan Airlines unit was planning a 4.5 billion yuan sale of nine planes to HNA Aviation Group, a Hong Kong-based unit it owns, which would have kept the onshore unit afloat, but the deal was abruptly cancelled on Wednesday, after HNA Aviation changed its operation strategy, according to an exchange filing.