HNA’s cash pile shrinks 20 times faster than debt as the progress of the conglomerate’s asset sale drags on

Cash, equivalents and short-term investments as of the end of June tumbled 61 per cent from a year earlier, according to HNA’s interim report

Total debt fell 3 per cent

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Published: 12:22pm, 4 Sep 2019Updated: 12:22pm, 4 Sep 2019

HNA Group’s cash pile shrank 20 times faster than its debts, indicating that pressure is building for one of China’s most indebted conglomerates to speed up asset sales.

Cash, equivalents and short-term investments as of the end of June tumbled 61 per cent from a year earlier, according to data derived from the Hainan-based Chinese group’s interim report released on Friday. By comparison, total debt fell 3 per cent.

The figures illustrate how HNA’s liquidity challenges persist more than a year after the company that was once at the forefront of China’s unprecedented acquisition binge began dumping tens of billions of dollars in assets as borrowing costs soared. Other trophy hunters such as Dalian Wanda Group and Anbang Insurance Group have also had to reverse their empire-building ways after the Chinese government cracked down on such transactions.

HNA, once the biggest shareholder of the likes of Deutsche Bank and Hilton Worldwide Holdings, continues to struggle keeping up with its dues. It failed to repay a yuan-denominated bond in July and creditors seized some of its golf courses and other assets after a unit missed a loan payment.

As bad as its financials are, HNA will probably be able to eventually pay back its debts because of government support, though risks remain that company will default on its obligations, according to Warut Promboon, managing partner at credit research firm Bondcritic.

Meanwhile, the conglomerate keeps pursuing asset sales - RRJ Capital is in advanced talks to lead a US$4 billion investment in HNA’s Ingram Micro, people familiar with the matter have said.

HNA’s cash pile shrinks 20 times faster than debt as the progress of the conglomerate’s asset sale drags on

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} Cash, equivalents and short-term investments as of the end of June tumbled 61 per cent from a year earlier, according to HNA’s interim report Total debt fell 3 per cent

Cash, equivalents and short-term investments as of the end of June tumbled 61 per cent from a year earlier, according to HNA’s interim report

Total debt fell 3 per cent