CWT lenders put MRI metals trading, warehousing units up for sale

CWT International

12/06/2019 07:59

MELBOURNE, June 12 (Reuters) - Lenders to CWT International
Ltd  0521.HK , a unit of China's indebted HNA Group Co Ltd
 HNAIRC.UL , have put its Singapore-based metals trading and
logistics units up for sale, according to a filing to Hong
Kong's bourse on Wednesday.
    The proposed sale comes after CWT International defaulted on
a HK$1.4 billion ($179 million) loan in April, since when
trading in its shares has been suspended.  urn:newsml:reuters.com:*:nL3N21Y1A0
    Receivers are now carrying out due diligence on assets
underlying the loan that include a holding firm for HNA's metals
and minerals marketing and logistics services. Other assets
pledged include properties in Britain and the United States and
golf courses in China.
    "Receivers currently have the intention to, and are taking
steps to ... dispose of the company's subsidiaries," CWT
International told the Hong Kong stock exchange.   
    While lenders had seized the assets in April, they had
determined not to interfere with the trading business in case
they diluted its value, a source said at the time. 
    HNA had been in talks with banks to find a buyer for CWT Pte
as early as last year, sources told Reuters in September, nine
months after it acquired the business in a $1 billion deal.
    "For us, it's business as usual (for all businesses)," Lynda
Goh, CWT Pte's Deputy Group CEO & Group CFO told Reuters.
    CWT is a London Metal Exchange-registered warehousing
company that in 2011 bought marketer and trader MRI Trading AG.
MRI was started by oil and metals trader Marc Rich, who
ultimately went on to found global trader Glencore  GLEN.L .
    A sale of CWT would be the latest in a series of divestments
aimed at slashing debt at HNA, an aviation-to-financial services
conglomerate.
    
($1 = 7.8216 Hong Kong dollars)

 (Reporting by Melanie Burton in MELBOURNE; additional reporting
by Mai Nguyen in SINGAPORE; editing by Richard Pullin)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))