Distress

HNA-linked firms rocked by shareholder fights and asset seizures

A shareholder dispute is escalating at Hong Kong Airlines and creditors have seized most of the assets of CWT International. Both firms are partially owned by troubled HNA Group.
Shareholder disputes in Hong Kong Airlines have seen the deployment of security guards and legal action.
Shareholder disputes in Hong Kong Airlines have seen the deployment of security guards and legal action.

Shareholder disputes and seizure of assets have hit two Hong Kong companies with debt troubles Hong Kong Airlines and CWT International. A major shareholder of both firms is Chinese private conglomerate HNA Group which is struggling to reduce billions of dollars of debt.

The city’s third largest airline, where HNA holds a 29% stake, is wracked by legal action. One party includes former director Zhong Guosong, who owns 27% of the airline, and Chinese private equity firm Frontier Investment Partner, which owns 34%. The other side includes chairman Hou Wei.

On Tuesday, a summons was issued from the Hong Kong High Court against seven defendants....

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