HNA Group’s American subsidiaries asked, and received, bailout funds from US government’s relief programme

HNA Group, the troubled conglomerate that’s being taken over by the Chinese state, is among recipients of the billions of dollars in coronavirus-relief loans handed out by the US government.

HNA Group North America and HNA Training Center NY, two of the Haikou, Hainan-based group’s units, got between US$350,000 and US$1 million each from the Paycheck Protection Program, a list posted by the US Department of the Treasury showed.

The programme was introduced earlier this year by the US Small Business Administration to help struggling companies pay workers hit by pandemic lock downs. A representative for HNA declined to comment.

HNA, which shot into international limelight between 2016 and 2017 after spending more than US$40 billion on acquisitions across six continents, is now facing liquidity risks following the debt-fuelled binge. Earlier this year, Chinese authorities announced the government would start taking control of the group, likely paving the way for speedy asset disposals and boosting HNA’s ability to repay about US$75 billion of debt.

HNA Group North America was established to facilitate the conglomerate’s inroads in the US, directing investments and identifying suitable joint venture partners or acquisitions, according to a 2015 interview with then company president Daniel Chen by Leaders Magazine. Chen is now chairman and chief executive officer of the company, as well as the president of HNA Group, according to the group’s website.

The Small Business Administration has approved about 4.9 million loans totaling US$521 billion as of Monday, according to the program’s website.