HNA Group founder Chen Feng barred from luxury spending after failing to pay investor in lawsuit
- Chen Feng, founder and chairman of HNA Group, cannot travel on planes or high-speed trains without prior approval from court
- The aviation-to-property conglomerate has delayed payments on debt worth billions of yuan as problems mount amid pandemic
Chen Feng cannot spend on activities that are not essential to day to day life and work, according to two orders issued by the Xian City Beilin District Court in Shaanxi province on Tuesday.
Chen has been barred from travelling on planes or high-speed trains without approval from the court. He has also been told that he cannot buy property, undertake expensive renovation of his homes, rent high-end offices or spend in expensive hotels, clubs or golf courses, among other restrictions.
HNA Group did not reply to an email from the South China Morning Post. A representative of its media relations team said he was not aware of the issue and declined to comment.
The Xian court had ruled in March that HNA Group, along with its affiliate company, needed to return money they owe to a plaintiff named Chai Jing in a dispute involving HNA’s high-interest online investment platform Jubaohui.
The companies were told to pay Chai more than 36,000 yuan ($5,320) of principal and interest within 10 days of the March ruling, according to the court. But they failed to do so, the court order on Tuesday said.
HNA had promised to help pay back investors who invested in the products before January 25, 2020, but it failed to honour its commitment.
HNA Technology, an HNA-owned entity, was also sued by Deloitte Advisory for unpaid services fees of HK$4 million in the Hong Kong High Court.
The group’s airline business has been hit hard by the Covid-19 pandemic, which has forced global carriers to ground nearly 90 per cent of their fleets.
Additional reporting by Reuters
