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HNA Capital’s Bohai stake mostly pledged for loans

HNA Capital has pledged almost all of its 34.6% stake in Avolon’s parent company Bohai Capital to a series of Chinese securities companies, amid the HNA Group’s push for additional liquidity.

Shenzhen Stock Exchange filings disclose that HNA Capital has pledged 2.13 million of its 2.14 million shares to around 18 institutions, incuding China Everbright Securities, Bohai Trust and Haitong Securities.

Two other HNA-linked investment partnerships, HNA Capital Tianjin Tongwan Investment and HNA Capital Shenzhen Xinghang Rong Investment Fund hold stakes of 4.26% and 8.52% respectively, which have also been pledged as collateral.

HNA faces a liquidity crunch, with Bloomberg reporting that the conglomerate is looking to sell real estate and other assets in its portfolio to access additional cash and meet its interest repayment obligations.

That has led to speculation that it may consider selling Avolon. To date, however, sources close to the company tell FlightGlobal that there are no plans to sell the aircraft lessor.

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