Hainan Airlines Holdings has agreed a CNY4 billion yuan (USD568 million) syndicated loan with eight state-owned banks, which it said would be used for operating expenses such as fuel, employee wages, aircraft leases, and airport charges.

In a stock market filing on December 3, the HNA Group affiliate said that each of the eight banks would provide a loan of CNY500 million (USD71 million).

Led by China Development Bank, which has been overseeing HNA’s restructuring, the syndicate also includes the China Export-Import Bank, the Bank of China, the China Agricultural Bank, the China Industrial and Commercial Bank, the China Construction Bank, the Bank of Communications, and the China Post Savings Bank.

The term of this loan to privately-owned Hainan Airlines Holdings, from some of China's biggest state-owned banks, is three years including a grace period of two years, with a 4.75% interest rate. The news agency Bloomberg speculated that the involvement of so many state-owned banks confirms that although debt-laden HNA Group is a private company its restructuring has state support.

Hainan Airlines Holdings is listed on the Shanghai Stock Exchange. Members include Hong Kong Airlines (HX, Hong Kong Int'l), which, as previously reported, was ordered by the Hong Kong authorities this week to boost its finances by December 7 or risk the loss or suspension of its Air Operator's Licence (AOL).

Hong Kong Airlines has admitted it would be late in paying wages for November to about half of its staff. It has also previously been taken to court for unpaid aircraft leases and according to Bloomberg is understood to be in debt over some airport and fuel charges.

Other carriers that are part of Hainan Airlines Holdings include Hainan Airlines, Air Changan, Air Guilin, Capital Airlines (China), China Xinhua Airlines, Fuzhou Airlines, GX Airlines, Hong Kong Air Cargo, Lucky Air (China), Shanxi Airlines, Suparna Airlines, Tianjin Airlines, Urumqi Air (30% stake), and West Air (China).