HNA Group's Bonds Plunge to Record Lows Amid Share Halt Concerns

(Bloomberg) -- It’s been a bad week for bonds of the debt-laden Chinese conglomerate HNA Group Co., with stock trading halts at four units adding to investor concerns.

One of the securities sold by HNA Group International Co. that matures in 2019 slid as much as 4.2 cents this week -- the biggest weekly fall in six months -- to a record low of 84 cents on the dollar. The company’s bonds due 2021 shed 3.3 cents this week to 79.5 cents, also near the lowest ever.

Fresh uncertainties are swirling around the conglomerate, already grappling with higher borrowing costs after an acquisition spree across the globe invited scrutiny from regulators and investors. HNA-Caissa Travel Group halted its shares from trading in Shenzhen ahead of a “major” announcement, becoming the fourth unit to do so since last week. Some subsidiaries missed payments due to several Chinese banks in recent weeks, people with knowledge of the matter said this month.

“HNA has seen fresh liquidity concerns over missed payments,” said Warut Promboon, managing partner at credit research firm Bondcritic Ltd. “Its debt problems are mounting. When it rains it pours.”

To contact the reporter on this story: Denise Wee in Hong Kong at dwee10@bloomberg.net.

To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Ken McCallum

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