HNA Group Declares Bankruptcy, Begins Restructuring

HNA Group Declares Bankruptcy, Begins Restructuring”

It said creditors asked "for bankruptcy and reorganization of our group because the group can not repay their debts".

HNA Group, which owns one of China's largest passenger carriers, Hainan Airlines, said in a statement on Friday that its creditors had filed a petition with the Hainan Province High People's Court for the group's bankruptcy and reorganization "as it could not pay off due debts".

HNA Technology Co. fell as much as 9.8% in Shanghai on Monday and CCOOP dropped 9.9% in Shenzhen; Hainan Airlines plunged 9.8%, while HNA Infrastructure slumped 8.9% before paring most of the losses.

HNA added that it would cooperate with the court in conducting a judicial review, push forth with debt disposal work, and support the court in protecting creditors' rights.

Friday's announcement signals that the tumultuous saga of HNA is in its final chapter.

HNA has controlling stakes in 18 listed companies.

Three units of HNA, once China's most acquisitive conglomerate, said almost $10 billion had been embezzled by shareholders, in disclosures to stock exchanges that come amid a government-led probe into the deeply indebted group.

The group still has stakes in several Chinese and global airlines, an industry decimated by the pandemic - for example, it owns Hong Kong Airlines, which laid off hundreds of staff a year ago amid a steep drop in tourism. HNA Infrastructure Investment Group Co. and CCOOP Group Co. also reported they have failed to disclose about 46 billion yuan in debt guarantees, according to separate filings to the Shanghai and Shenzhen stock exchanges on January 30.

More news: Man City making case for defense in latest EPL title charge

Three units of HNA, once China's most acquisitive conglomerate, said almost €8bn had been embezzled by shareholders, in disclosures to stock exchanges that come amid a government-led probe into the deeply indebted group.

The company had indicated in a statement last week that a joint working group headed by Gu had settled on a debt reduction plan.

HNA is also subject to multiple lawsuits from investors and clients to whom it is indebted, including consultancy firm Deloitte.

HNA is not the only conglomerate to be caught in the crosshairs of China's financial regulators.

Founded as an airline in the 1990s by entrepreneur Chen Feng with seed money from George Soros, the company emerged from near obscurity to mount a buying binge that saw it become the top shareholder of Deutsche Bank and Hilton Worldwide Holdings.

In December HNA agreed to sell Ingram Micro to United States fund manager Platinum Equity in a $7.2 billion deal.

On Thursday, HNA revealed a major management reshuffle as its co-founder Chen was left off of the company's Communist Party committee, a key decision-making body with powers similar to the company's board.

Like this



01 February 2021
Myntra to change logo following complaint calling it ‘offensive towards women’
Naaz Patel, who is associated with Avesta Foundation NGO, filed the complaint in December 2020 with the state cyber police. While some welcomed the company's decision to change the logo, many said such demands for logo changes seemed whimsical.

01 February 2021
Met Eireann issues weather alert for Kilkenny this weekend
Wednesday and Thursday will continue unsettled and breezy with further showers or longer spells of rain. Meanwhile, a national weather advisory for all of Ireland remains in place until midnight on Sunday.

01 February 2021
Britain's Centenarian Fundraiser Captain Tom Moore Admitted to Hospital With Covid-19
Boris Johnson said the centenarian had provided the country with "a beacon of light through the fog of coronavirus". As an honorary colonel, his official title will be Captain Sir Thomas Moore under Ministry of Defence protocol.

01 February 2021
Justin Timberlake Teases A New Album Is On The Way!
When asked about the artists with whom he would love to collaborate, Timberlake named Travis Scott and Kendrick Lamaar. On Instagram, Jessica Biel posted a photo of her husband with a stack of pancakes and mixed berries on the side.

01 February 2021
Direct Cloverfield Sequel In Growth, J.J. Abrams To Produce
After Bad Robot and Paramount bought the script, they saw a way to tie it in with the film's particle accelerator accident. According to Variety, Abrams will produce the sequel with Bad Robot head of film Hannah Minghella.

01 February 2021
Lionel Messi’s contract worth up to 555 million euros
That was followed by the resignation of the president who agreed Messi's 2017 contract, Josep Maria Bartomeu, in October. FC Barcelona have denied any responsibility in the publication of Messi's contract details.

31 January 2021
Netflix testing new feature for fall asleep
Although the timer can now be found exclusively on the Android version of Netflix , the feature will roll out to other platforms. Following any of the aforementioned time slots, Netflix will stop playing whatever content is running.

31 January 2021
Martin Odegaard: Arsenal close to completing loan deal with Real Madrid
The attacking midfielder has made just three La Liga starts this season, and has failed to register a goal or an assist in all competitions.

31 January 2021
Kelly Rowland Welcomes Second Child With Husband Tim Weatherspoon
Rowland captioned the post, which features a picture of her first born Titan , 6, smiling over his new little brother. She said: "He said that he wants a boy, but he's recently said he's wanted a girl".

31 January 2021
Single case of Covid-19 sends Perth into snap lockdown
Anyone now in WA from another region should stay put. "We are trying to crush the virus as quickly as we possibly can". Queensland Health said that timeframe could change as more information emerges about the Western Australian outbreak .