Hongkong Land Holdings Ltd. subsidiary Mulberry Land is taking troubled Chinese conglomerate HNA Group Co. Ltd. to court over a debt amounting to HK$8.3 million, the South China Morning Post reported, citing a writ filed with Hong Kong's High Court.
Two sources with knowledge of the matter were cited by the publication as saying that the unpaid sum was allegedly incurred when HNA surrendered five of eight floors at the Three Exchange Square building in Central as part of its cost-cutting initiatives.
According to the writ, Mulberry Land claims that the conglomerate owes two installments - roughly HK$3.7 million, which was due Dec. 1, 2018, and roughly HK$4.7 million due Jan. 1.
HNA, which gave up five of the floors it is leasing in the building in 2018, countered the allegation with a statement, saying that the relevant amount due has been fully paid, adding that a "liquidity problem" was the reason for the delay, without elaborating further, the Jan. 10 report noted.
Hongkong Land was unavailable to comment on the matter, SCMP noted.