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HNA Group founder barred from luxury spending after failing to pay investor in lawsuit

09/17/2020| 6:05:51 PM|

The conglomerate has been weighed down by debt worth billions of dollars and has frequently delayed its bond payment commitments.

The founder and chairman of HNA Group has been ordered by a court in China that he cannot indulge in luxury spending after the aviation-to-property conglomerate and its subsidiary failed to pay an investor in a lawsuit.

Chen Feng cannot spend on activities that are not essential to day to day life and work, according to two orders issued by the Xian City Beilin District Court in Shaanxi province on Tuesday.

Chen has been barred from travelling on planes or high-speed trains without approval from the court. He has also been told that he cannot buy property, undertake expensive renovation of his homes, rent high-end offices or spend in expensive hotels, clubs or golf courses, among other restrictions.

HNA Group did not reply to an email from the South China Morning Post. A representative of its media relations team said he was not aware of the issue and declined to comment.

HNA had promised to help pay back investors who invested in the products before January 25, 2020, but it failed to honour its commitment.

The conglomerate has been weighed down by debt worth billions of dollars and has frequently delayed its bond payment commitments. The companies also faces the risk of its stakes being wiped out in overseas entities such as Swissport, the Switzerland-based airport cargo handling firm, and Virgin Australia, the second largest carrier in Australia.

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TAGS: HNA Group | luxury spending | Chen Feng
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