According to the announcement, the loan term of this loan agreement is 3 years. Among them, the first two years are grace period. The interest rate of the loan is fixed, i.e. the annual interest rate is 4.75%, and the interest rate will not be adjusted during the loan term agreed in the contract. The guarantor HNA Group Co., Ltd., Chen Feng and Tan Xiangdong provide joint and several liability guarantee for the loan.
As for the purpose of the loan, it is announced that the loan is used for operating expenses such as aviation oil, aviation materials, takeoff and landing fees, personnel wages, aircraft rental, etc. of HNA holding and its subordinate airlines.
The announcement stressed that the main users of the 4 billion yuan syndicated loan applied for this time will be strictly in accordance with the provisions of the relevant laws and regulations of the CSRC and Shanghai Stock Exchange, and will only be used by HNA holding and its subsidiaries when using the loan.
Talking about the impact on listed companies, the announcement said that the companys application for bank loan is to promote the stable development of the companys daily business, ensure the safety and order of the companys operation, help the company to further prevent risks, focus on the main aviation business operation, improve the companys business performance, and will not damage the interests of the company and small and medium investors.
HNA holding is a subsidiary of HNA Group. At present, HNA Group is actively dealing with liquidity issues.
Chen Feng said in an interview with Guangming Daily that the difficulties of HNA this year have not passed. When it comes to resolving the critical battle of liquidity risk, it will unify the allocation of resources, gather the strength of the whole group, ensure that liquidity and production safety problems do not break out, and resolve all kinds of risks in a timely and effective manner. HNA should unswervingly dispose of its assets, return to its main business and realize healthy development. HNA has carried out large-scale asset disposal since the beginning of 2018. In 2018, it disposed nearly 300 billion yuan of assets, realized cash return, effectively curbed liquidity difficulties and achieved stable development.