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HNA Group restructuring plan endorsed by Hainan’s high court
November 2nd 2021
Debt-laden HNA Group’s mammoth restructuring plan has jumped another hurdle after it received a green light from the Higher People’s Court of Hainan province. Read More » The US$172 billion restructuring plan was approved by creditors last month and will result in the conglomerate, owner of Hainan Airlines, splitting into four sectors covering aviation, airport, financial and commercial assets. There also will be an injection of funds by strategic investors, reported to be 38 billion yuan (US$5.94 billion). Insiders have told Chinese media the restructuring is not expected to be completed until next March - at the earliest. A source told Reuters in June that some 67,400 parties had been seeking 1.2 trillion yuan from the conglomerate with air transport company Hainan Airlines Holdings reportedly accounting for 161.3 billion yuan of the total. The group’s highly publicised downfall has been punctuated with drama that has included the September arrests by Hainan province police of HNA Group chairman, Chen Feng, and the group’s CEO, Tan Xiangdon.
