HNA unit says bank accounts were temporarily frozen, issue now resolved (updated)
25/01/2018 12:07
(Adds Tianjin Tianhai profit forecast in final paragraph)
SHANGHAI, Jan 25 (Reuters) - A HNA Group HNAIRC.UL unit
said on Thursday that some of its accounts with a local bank had
been temporarily suspended this month - the latest in a series
of financial woes at the Chinese conglomerate amid rising
scrutiny of its heavy debt burden.
Tianjin Tianhai Investment Co Ltd 600751.SS said in a
filing to the Shanghai bourse that accounts at Ningbo Commerce
Bank were frozen on Jan. 12, but had been unfrozen by Jan. 15
following what it called friendly discussions with the bank.
Its shares have been suspended since Jan. 12 when the firm
disclosed it was working on major plan. It did not discose
details of the plan or that some of its bank accounts had been
frozen.
Tianjin Tianhai, parent of U.S. technology hardware and
services distributor Ingram Micro Inc, said the accounts had
been frozen due to a disagreement between controlling
shareholder HNA Technology and the Ningbo lender over the due
date of a loan. Tianjin Tianhai said it had guaranteed the loan.
Reuters could not immediately reach Ningbo Commerce Bank for
comment on Thursday.
Nearly half of Chinese conglomerate HNA's listed units have
suspended trade in their shares, ahead of an anticipated
restructuring among group companies. HNA faces rising financing
costs after a $50 billion acquisition spree over the past two
years. urn:newsml:reuters.com:*:nL4N1PK1K7
On Wednesday, HNA said it has passed compliance checks by
several global banks, a rare bit of good news for the
cash-strapped conglomerate. urn:newsml:reuters.com:*:nL4N1PJ31L
Tianjin Tianhai, which bought Ingram Micro last year for
about $6 billion, this month denied it was selling the
subsidiary after media reports about a planned
disposal. urn:newsml:reuters.com:*:nL3N1P908D
The firm said it would look to strengthen its communication
with its lenders in future to avoid similar situations happening
again.
With its acquisition completed, Tianjin Tianhai expects its
net profit in 2017 to increase by 123-172 percent from 321.51
million yuan ($51 million) from a year earlier due to the
inclusion of Ingram Micro's business, it said late on Thursday.
urn:newsml:reuters.com:*:nH9N1PE02C
($1 = 6.3196 Chinese yuan renminbi)
(Reporting by Adam Jourdan; Additional reporting by Engen Tham
and Matthew Miller; Editing by Edwina Gibbs and Adrian Croft)
((adam.jourdan@thomsonreuters.com; +86 21 6104 1778; Reuters
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
Keywords: HNA GROUP TIANJIN TIANHAI/