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July 2 (Reuters) - Automotive Holdings Group (AHG) on Monday said a unit of China's HNA Group Co Ltd terminated the purchase of AHG's refrigerated logistics business as it faced "liquidity problems" and had not obtained Australian regulatory approval.
The Australian automotive retailer had announced plans to sell the business to a unit of HNA for A$280 million ($207.2 million) in November last year.
"Unfortunately ... HNA has run into liquidity problems which combined with the delayed FIRB (Foreign Investment Review Board)process left the conditions precedent unable to be satisfied within an agreed timeframe,” AHG Managing Director John McConnell said in a statement.
HNA has been seeking to sell assets to raise cash and repay debt after overstretching itself through a debt-fueled buying spree in 2016 and 2017.
Last week, AHG had said the deal would not be completed by June 30 as earlier advised as HNA had not yet secured foreign investment regulatory approval.
($1 = 1.3514 Australian dollars)
