(Bloomberg) -- HNA Group Co. repaid a dollar-denominated bond on Monday amid a report China’s provincial government offered to help the debt-laden conglomerate repay its offshore creditors.
HNA Group International, a unit of HNA Group, repaid a $300 million bond due Aug. 18, a company spokesperson told Bloomberg, saying “we remain committed to meeting our financial obligations.” REDD reported last week that the Hainan government would provide 1 billion yuan ($142 million) to HNA Group to help it repay that bond.
Investors still remain jittery about the troubled firm’s ability to repay debt, after it missed principal and interest on its 1.5 billion yuan last month. HNA has been struggling to tackle its heavy debt load despite agreeing to sell more than $25 billion in assets since the beginning of 2018. In April, creditors of the conglomerate took the extraordinary step of seizing golf courses and other assets after a unit reneged on a loan payment.
HNA Group remains in a “liquidity crisis,” according to Everbright Securities Co. in a note. “2019 is another year when HNA faces a peak in debt maturities, which leaves it limited room for negotiation,” said Zhang Xu, a fixed-income analyst at Everbright.