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HNA faces delayed first HK Express payment
May 17th 2019
Cash crunch for conglomerate after shelving $1 billion Seaco sale. Read More »
HNA was due to receive HK$1.2 billion (US$153 million) last week as a first payment from Cathay Pacific for HK Express, according to Forbes.com. Cathay in March announced its intent to acquire HK Express by December 31, 2019. The transaction has not yet closed.
HK Express was said to have failed to meet requirements. A principal issue are two or three 747 freighters that HK Express legally owns but are operated by other HNA-related airlines. HK Express never operated the aircraft. HNA used the airline to hold ownership title.
Although the payment is seemingly small given the size of HNA, it faces a cash crunch. Last month various media reported that HNA abandoned sales of shipping container lessor Seaco. HNA had hoped to sell it for US$1 billion.
