(Bloomberg) -- Bohai Leasing Co. is in preliminary talks with financial institutions to raise a private loan of at least $1 billion for refinancing purposes, according to people with knowledge of the matter. 

The size of the borrowing could be as large as $2 billion, one of the people said, adding that the company is only engaged in verbal requests so far and has not provided lenders with a written proposal yet.

Bohai Leasing, a Shenzhen-listed arm of the failed conglomerate HNA Group Co., has been grappling with liquidity pressure over the past few years. The aircraft and container leasing firm failed to repay about 2.3 billion yuan ($317 million) of borrowings last year and it’s still discussing with banks and other creditors to extend the debt, according to its latest annual report released in April.

But the company also said its offshore subsidiaries have sufficient cash and access to refinancing channels, adding that income generated from its overseas business operations could cover its offshore debt repayments. It has $2 billion of loans and bonds due this year, according to data compiled by Bloomberg.

Bohai Leasing did not immediately respond to a request for comment.

Over the past several months, the company has been reviewing ways to divest to shore up funding. Bohai Leasing is in advanced talks to sell its container leasing firm Seaco, which could be valued at around $5 billion, Bloomberg News reported in June. The company was also working with an adviser to divest part or all of its 70% stake in Avolon, the world’s fourth-largest plane lessor, Bloomberg News reported in November. 

--With assistance from Danny Lee.

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