The chairman of cash-strapped HNA Group has been barred from taking flights and high-speed trains and going on vacations due to the Chinese conglomerate’s failure to pay a court-ordered $5,300 in a lawsuit, a court document showed.
The once high-flying company, which owns Hainan Airlines, is in the midst of a restructuring led by the Hainan government to resolve its liquidity risks stemming from years of aggressive acquisitions abroad.
The group and its affiliates have delayed payments on a few bond products this year.
HNA chairman and legal representative Chen Feng has also been barred from spending at star-rated hotels, nightclubs and golf clubs, and buying properties and high-premium insurance products, an order from the People’s Court in Xi’an city’s Beilin district showed on Tuesday. The order also disallows his children from attending private schools.
The conglomerate declined to comment on the order.
While such court-ordered bans in China are indefinite, there are precedents where bans have been lifted after the defendants paid.
The Xi’an court had ruled in March that HNA Group, along with its three affiliated companies, needed to return money they owe to a plaintiff named Chai Jin in a dispute involving HNA’s high-interest online investment platform Jubaohui.