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Airlines

UPDATE 1-China's HNA Capital seeks delay for $9 mln interest payment

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SHANGHAI, April 22 (Reuters) - HNA Capital, a unit of Chinese conglomerate HNA Group said on Wednesday it was seeking a five-month extension for a $9-million bond interest payment, a week after its parent secured a one-year repayment reprieve over protests by small bondholders.

In an official filing, HNA Capital said it would seek bondholder approval to delay an annual coupon payment on its 800 million yuan April 2021 bond due April 29, until Sept. 30.

At the coupon of 8%, the company was due to pay bondholders 64 million yuan ($9.03 million).

The company said it would hold a bondholder meeting on April 26 to discuss the plan, adding that the coronavirus pandemic and imminent coupon payment made it exempt from rules that require 15 days’ advance notice of such meetings.

Last week, HNA Group apologised to bondholders after securing a one-year repayment extension for 390.4 million outstanding of a maturing 1.15 billion yuan bond, after having given them just 30 minutes’ warning to register for a meeting.

In March, its chairman said the company was in a “state of war” as it grappled with financial risks. The company has sought government assistance in tackling financial risks exacerbated by the pandemic. ($1=7.0847 Chinese yuan) (Reporting by Andrew Galbraith; Editing by Himani Sarkar and Clarence Fernandez)

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