A Chinese Billionaire Is Barred From Spending Over Unpaid Debts

A Chinese Billionaire Is Barred From Spending Over Unpaid Debts

No to start with-class flights. No holidays. No large-velocity rail tickets or lavish weekends at the golf course.

A Chinese court this week barred Chen Feng, the chairman and co-founder of the Chinese conglomerate HNA Group, from producing massive purchases after the enterprise failed to pay back revenue it owed in two lawful settlements, a humbling transform of activities for what was when a person of the country’s major and most acquisitive business empires.

China has for many years utilised expending constraints as a way to enforce debts and discourage irresponsible borrowing. It has even designed details about defaulters publicly searchable on the web, as a kind of blacklist of those who are prohibited from splashing out on vacation, genuine estate and high-priced private educational facilities for their youngsters.

An HNA agent did not react to a request for comment.

Mr. Chen, who is in his mid-60s, helped renovate a Chinese regional airline based mostly on the island province of Hainan into a worldwide company behemoth. HNA took stakes in providers including Hilton Hotels, Deutsche Financial institution and Virgin Australia. It purchased up trophy properties and golfing classes. Mr. Chen and his brother each ordered an total flooring at A person57, an ultra-luxurious Manhattan residential tower.

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Posted by Krin Rodriquez

Passionate for technology and social media, ex Silicon Valley insider.