Amid liquidity concerns, China's HNA aviation fuel bill hits $476m, sources say

China’s HNA Group has amassed an estimated 3b yuan (US$476m) bill with a state-run aviation fuel company, two oil industry sources said, underscoring how a deepening cash crunch is plaguing core operations at the conglomerate.<br/>HNA’s outstanding balance with China National Aviation Fuel Group Ltd (CNAF), the country’s near-monopoly marketer and distributor of aviation fuel, has swelled significantly over the last six months, the sources said, without quantifying. “HNA has not stopped fully paying its bills, but it only has paid a small amount at a time, so the outstanding (balance) has grown bigger and bigger,” said a senior oil industry executive with direct knowledge of the matter. A second executive briefed on the situation said the problem “really deteriorated over the past several months”. HNA has controlling stakes in Hainan Airlines Holding and 12 other carriers in China and Hong Kong. The company also has invested heavily in aviation leasing, logistics and financial services. HNA Group said in a statement on Wednesday Hainan Airlines “maintained positive and friendly communication” with CNAF. “At present, all businesses are carried out steadily,” it added, without elaborating. The unpaid bills underscore how an ongoing liquidity squeeze is rippling through company core operations, impacting even its highly successful airlines business.<br/>