HNA Group sues company linked to subsidiary Hong Kong Airlines for more than HK$850 million as bad news piles up for struggling carrier
- Court papers show group is seeking repayment from Hong Kong Airlines Consultation Service, a company owned by an ex-director of carrier
- ‘Frictions among factions’ in group comes after spate of high-level resignations at city’s third-biggest carrier
Debt-laden mainland aviation conglomerate HNA Group has sued a firm owned by a former director of its subsidiary, Hong Kong Airlines, for about HK$854 million in unpaid debt, just two weeks after news surfaced of an exodus of top executives from the city’s third-largest carrier.
HNA Group (Hong Kong) Investment is seeking the repayment of the debt issued in the form of a promissory note on December 30, 2010 to Hong Kong Airlines Consultation Service, according to a legal document made available Monday at the High Court.
According to the Companies Registry, Hong Kong Airlines Consultation Service is owned by Zhong Guosong, who was a director of Hong Kong Airlines until August 21 and who is also executive chairman of HNA’s other carrier, Hong Kong Express.
However, there was confusion yesterday after Hong Kong Airlines denied any link to the company.
“This lawsuit is not related to Hong Kong Airlines,” a company spokeswoman said, without offering any details on the company’s structure. “Hong Kong Airlines does not own Hong Kong Airlines Consultation Service.”
Meanwhile, Hong Kong Express also distanced itself from any involvement.
