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HNA said to face lender questions on US$1 billion CWT takeover

Bloomberg Published on Thu, Jul 27, 2017 / 6:11 PM GMT+8

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(July 27): HNA Group Co., the acquisitive Chinese conglomerate, is facing additional questions from banks working on financing its proposed US$1 billion ($1.4 billion) takeover of Singapore logistics operator CWT, people with knowledge of the matter said.

Firms including Malayan Banking and RHB Bank, which are preparing a loan package to back the acquisition, have been seeking more information from HNA in recent weeks, the people said. The lenders started scrutinizing HNA’s leverage ratios more closely to assess how much debt they can provide, according to the people, who asked not to be identified because the information is private.

They have also been evaluating whether the Chinese company has ways to support CWT’s business and service the debt if there is a downturn in the logistics industry, one of the people said. The lenders will need more time to assess the latest information before finalizing the terms of any financing, the people said. Maybank and RHB are still working on the funding, though the situation remains fluid and there’s no certainty they will be able to reach an agreement, the people said.