Hainan Airlines calls bondholders for meeting on plan to defer debt repayment amid liquidity squeeze

Hainan Airlines is calling a meeting with bondholders this week to seek a delay in repayment, citing tight liquidity as the coronavirus pandemic slammed travel and carriers worldwide. The airline, part of the debt-stricken HNA Group, is holding a conference call Friday with holders of its 750m yuan (US$106.4m) 4.35 per cent bond, according to a Shanghai Clearing House filing on Tuesday. The 270-day bond matures on April 17. Revenue has dropped significantly due to the Covid-19 outbreak, the company said in the filing. Debt repayment pressure has been relatively high in the past two years and the company is likely unable to repay the short-term notes and hopes to extend the repayment, it added. The carrier’s financial crunch adds to a long list of troubles faced by its parent company as ambitious debt-funded expansion plans in the past five years turned sour. Hainan Airlines said passenger volume slumped 64.8% year over year in February to about 5.09m, while freight volume shrank 39.2% to 51,200 tonnes. Both capacities fell by about 60 to 62%.<br/>