HONG KONG (Reuters) - Chinese conglomerate HNA Group's [HNAIR.UL] Hong Kong International Investment unit has negotiated a six-month deadline extension for a loan linked to a land parcel in Hong Kong as its parent contends with growing debt challenges.
Monday's statement on behalf of the company did not detail the amount outstanding.
However, Thomson Reuters Loan Pricing Corp (LPC) reported on Thursday that aviation-to-property conglomerate HNA needed fresh funding to repay bridging loans and to finance development of four plots of land in Hong Kong's Kai Tak area.
One of the bridging loan tranches, worth HK$2.5 billion ($320 million), was due on Monday, LPC said.
HNA is facing rising financing costs after spending $50 billion over the past two years on deals that included investments in Deutsche Bank (DE:DBkGn) and the Hilton (N:HLT) hotels group.
An executive at the indebted group told Reuters in December that the conglomerate was not facing a liquidity crisis and characterized its high-profile investments as successful.
The HNA unit said in Monday's statement that the bridging loan maturity was being extended to July 15 because it needed "extra time to complete arrangement" for the development of the Hong Kong land.
"We would like to stress again that we have planned meticulously on all aspects of the development and funding of the project and the company has good relationship with the bankers," it said.
"We can speak with confidence that we have secured sufficient capital to support development of this project and the project will proceed smoothly as planned."