The Chinese Conglomerate Went Bankrupt
Chinese conglomerate HNA Group announced it was facing bankruptcy and would restructure to manage its debt as a follow-up to dealing with the protracted financial crisis.
The group, which owns one of China’s largest airlines, Hainan Airlines, said in a statement on Friday that their creditors had filed a bankruptcy and reorganization application with the courts.
Not only known as one of China‘s private aviation conglomerates, HNA was previously a shareholder in the Hilton hotel group and Deutsche Bank.
The group also owns Hong Kong Airlines, which laid off hundreds of staff last year due to a sharp downturn in the tourism business as a result of the pandemic.
In addition, they are known to have made a number of other aggressive acquisition deals. They have investments that cover the aviation, tourism, real estate, and financial services sectors.
In 2017, the Chinese government took action against the aggressive global expansion of HNA. HNA was forced to reduce assets and asked to focus on the airline and tourism business.
Burdened with billions of dollars in debt, the conglomerate is trying to sell off their assets one by one.
On Friday (29/1), HNA said it received a notification from the Hainan Province High People’s Court saying “creditors have filed an application to the court for bankruptcy and group restructuring because they were unable to pay off maturing debts.”
HNA added that his party would cooperate with the court in conducting a review. The action is expected to encourage debt settlement and support the courts to protect creditors’ rights.
The bankruptcy announcement comes about a week after the HNA said a working group of local government leaders had drawn up a risk disposal plan.
The HNA added that the plan was “in full swing” and would enter a “critical period”.
The Chinese Conglomerate Went Bankrupt - /10