HNA unit CWT Intl defaults on $179 mln loan, faces asset seizure (updated)

CWT International

16/04/2019 06:54

(Adds details on assets)
    By Kane Wu
    HONG KONG, April 16 (Reuters) - CWT International Ltd
 0521.HK , a unit of indebted HNA Group Co Ltd  HNAIRC.UL , on
Tuesday said it defaulted on a HK$1.4 billion ($179 million)
loan, and that it has less than 24 hours to pay funds due or
lose assets pledged as collateral.
    CWT, in a filing to the Hong Kong stock exchange, said it
has not paid accrued interest and fees worth HK$63 million to
lenders, who will take possession of the assets if the amount
due is not paid by 9 AM (0100 GMT) on Wednesday.
    Among assets pledged is wholly owned CWT Pte Ltd, a holding
firm for HNA's commodity marketing, engineering, finance and
logistics services. Other assets pledged include properties in
Britain and the United States and golf courses in China.
    One property, 17 Columbus Courtyard in London's Canary Wharf
development - with tenants including Credit Suisse Group AG
 CSGN.S  - was bought in July 2016 for 131 million pounds ($172
million). In 2018, it was on sale with a value of HK$1.3 billion
($166 million).
    CWT International, which operates in 90 countries, also owns
a portfolio of golf courses in the U.S. city of Seattle, stock
exchange filings showed.
    The Chinese aviation-to-financial services conglomerate
bought the Singapore-based firm for $1 billion in December 2017
via wholly owned subsidiary HNA Belt and Road Investments
Singapore. It then merged the firm with one of its Hong
Kong-listed units and named the resulting entity CWT
International.
    Since late last year, HNA has been in talks with banks to
find a buyer for CWT, as it divests assets to pay off debt.
 urn:newsml:reuters.com:*:nL3N1W52JP
    HNA declined to comment on Tuesday.
    CWT's assets were worth HK$24.6 billion at the end of 2018,
when it posted a loss of HK$557.3 million. Late last month, it
said it would be unable to repay the borrowed HK$1.4 billion in
full as scheduled in October unless it sells assets - which it
said has been challenging - or refinances the loan.
    Trading of CWT shares has been suspended since April 10.

($1 = 0.7640 pounds)
($1 = 7.8397 Hong Kong dollars)

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HNA explores sale of newly acquired CWT logistics unit -sources 
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 (Reporting by Kane Wu; Additional reporting by Jennifer Hughes;
Editing by Christopher Cushing)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))