/A Chinese Billionaire Is Barred From Spending Over Unpaid Debts

A Chinese Billionaire Is Barred From Spending Over Unpaid Debts

No first-class flights. No holidays. No high-speed rail tickets or lavish weekends on the golf course.

A Chinese courtroom this week barred Chen Feng, the chairman and co-founder of the Chinese conglomerate HNA Group, from making massive purchases after the corporate didn’t pay cash it owed in two authorized settlements, a humbling flip of occasions for what was as soon as one of many nation’s largest and most acquisitive enterprise empires.

China has for years used spending restrictions as a technique to implement money owed and discourage irresponsible borrowing. It has even made details about defaulters publicly searchable on-line, as a type of blacklist of those that are prohibited from forking out on journey, actual property and costly personal colleges for his or her youngsters.

An HNA consultant didn’t reply to a request for remark.

Mr. Chen, who’s in his mid-60s, helped rework a Chinese regional airline primarily based on the island province of Hainan into a world company behemoth. HNA took stakes in corporations together with Hilton Hotels, Deutsche Bank and Virgin Australia. It purchased up trophy properties and golf programs. Mr. Chen and his brother every bought a complete ground at One57, an ultra-luxurious Manhattan residential tower.

Source link Nytimes.com

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