(Reuters) - China’s top leaders have agreed to help debt-laden conglomerate HNA Group Co HNAIRC.UL raise funds, Bloomberg reported on Friday, citing people familiar with the matter.
A senior official at the People's Bank of China, on Tuesday, led a meeting with three regulators, the Hainan provincial government, HNA's co-chairman Chen Feng and the company's biggest creditor, asking the attendees to support HNA's future bond issues, Bloomberg reported here
The meeting also included representatives of China Banking and Insurance Regulatory Commission, National Association of Financial Market Institutional Investors, State Administration of Foreign Exchange and China Development Bank, according to the report.
The government has asked HNA to stop diversifying via acquisitions and focus on its main travel business, the report said.
The Chinese aviation-to-financial services has been unloading assets and its stakes in companies such as Hilton Worldwide Holdings Inc (HLT.N), Park Hotels & Resorts (PK.N) and Spain’s NH Hotels (NHH.MC) as part of a wider reorganization.
The moves were sparked by mounting debt levels after announcing more than $50 billion worth of global M&A deals over 2016 and 2017.
HNA was not immediately available for comment.
Reporting By Aparajita Saxena and Arunima Banerjee in Bengaluru