* OIO blocked $460 mln ANZ sale of UDC to HNA in December
* High debts, low liquidity raised default risks - OIO
* Under-pressure HNA is selling real estate, shares
SYDNEY, April 18 (Reuters) - New Zealand's Overseas Investment Office (OIO) blocked an attempt by China's HNA Group to buy a vehicle finance firm in part due to doubts about the debt-saddled conglomerate's financial stability, documents showed on Wednesday.
The OIO halted HNA's planned $460 million purchase of New Zealand's largest non-bank lender, Australia and New Zealand Banking Group's ANZ.AX UDC, in December, citing uncertainty over HNA's ownership structure. documents released on Wednesday showed the office was also concerned about the conglomerate's debt and liquidity, as well as its complex structure.
HNA's debt "appears to be substantially in excess of ... underlying assets," the OIO said, which together with "well-known liquidity issues" at HNA "increases the liklihood of a default event".
It added that HNA was unable to clearly explain its ownership structure and so concluded the deal should be rejected.
HNA, an aviation-to-financial services conglomerate best known as the owner of Hainan Airlines Co 600221.SS , did not immediately respond to requests for comment.
At the time the deal was blocked, an HNA spokeswoman said the decision was inconsistent with the views of other regulators around the world that had approved HNA and other Chinese investments.
HNA has announced acquisitions worth more than $50 billion in the past two years, but has faced increased questions about its governance since a July announcement outlining its ownership showed two shareholders were proxies for founding executives.
Chinese banks have privately and publicly voiced concern after HNA failed to repay some obligations, including aircraft lease payments, and as surging debt drove up the cost of the group's short-term fund raising to new highs. the start of the year, it has agreed to sell more than $10 billion in prime real estate in Australia, New York and Hong Kong, along with shares in Deutsche Bank DBKGn.DE , Park Hotels & Resorts PK.N , Hilton Grand Vacations Inc HGV.N and Hilton Worldwide Holdings HLT.N , to service debts.
ANZ said last month it is considering an initial public offering (IPO) of UDC since the sale to HNA was blocked.