CWT International Ltd., controlled by the HNA Group, did not pay interest of $ 1.4 billion ($ 241.7 million), prompting lenders to demand immediate repayment of the loan, the company announced today (April 16).
The Hong Kong-listed company will have to pay the payment at 9 am on Wednesday, April 17, to prevent lenders from taking action, the announcement said. Failure to settle the loan by then will allow the creditors to take over all of the charged assets, including its holdings in CWT Pte, properties in Britain and the United States, and golf courses in China. The claims represent an "overwhelming majority" of total assets, which stood at $ 24.6 billion at the end of 2018.
The HNA Group The parent of CWT International was one of the most expensive companies in China until it began to face liquidity and pressure challenges from the government. The conglomerate has agreed to sell more than $ 25 billion of assets, from property to large holdings since 2018. Despite that, it is still struggling to repay debt. The group phoned a local note after a delay last month.
CWT International, which is engaged in the field of logistics and financial services, is actively negotiating with the lenders, with the aim of processing other arrangements for repayment carried out as part of the Facility Agreement.The default, however, led to default cross-borrowing under the loan term, which at about $ 766 million outstanding, He said trading in CWT International stocks remained suspended.
CWT Pte, a unit under CWT International, has a $ 100 million bill not yet realized on Thursday and another bond of the same amount as next March, according to Bloomberg data. That there may be "material uncertainty" in the Company, which "may cast significant doubt on the Group's ability to continue as a going concern".
"We are of the opinion that CWT Pte will pay Singapore's dollar bonds on April 18, when CWT Pte holds assets and has existing businesses," said Ezien Hoo, a credit analyst at Oversea Chinese Banking, which complicates the process and delays.