HNA share pledges are said to be behind frozen bank accounts

Hong Kong

BANK accounts related to HNA Group Co were temporarily frozen after one of its lenders concluded that the collateral being put up by a group unit was being used for multiple borrowings, according to people with knowledge of the matter.

Ningbo Commerce Bank lent 450 million yuan (S$93 million) to HNA Technology Group Co, backed by 70 million shares of Shanghai-listed unit Tianjin Tianhai Investment Co, said two of the sources, who asked not to be named discussing a private matter. After determining that those shares were pledged to another creditor, Ningbo Commerce sought to freeze related bank accounts, the sources said. A representative for Ningbo Commerce declined to comment.