HNA to hold creditor meeting; restructuring plan folds entities into one group – document

Popular Categories

Subscribe Here

imageStock Markets23 minutes ago (Sep 27, 2021 01:05AM ET)

(C) Reuters. FILE PHOTO: The HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo

SHANGHAI (Reuters) – Eleven entities belonging to embattled conglomerate HNA Group, including its flagship carrier, Hainan Airlines, will hold a creditor meeting on Monday, according to a document detailing its debt restructuring plan, seen by Reuters.

Under the plan, the 11 entities will be reorganised as a group and most of the group’s liabilities will be reduced via debt-to-equity swaps and shareholder repayments.

Creditors of the entities have reported that they are owed 397.2 billion yuan ($61.43 billion) of unpaid debt. Only 161.29 billion yuan of this has been recognised by the court and will enter the restructuring process.

Unsecured creditors who are owed no more than 100,000 yuan ($15,465.01) in principal debt will be repaid in full. Any debt above that level will be paid partly by HNA and other parties, and partly in Hainan Airlines’ shares, according to the document.

The creditors’ committee still must approve the plan, the document said.

HNA was placed in bankruptcy administration in February and a working group created by the government of its home province of Hainan has been addressing the company’s liquidity problems.

Late on Friday, the company said its chairman and chief executive had been detained by Chinese police over suspected criminal offences.

HNA has said that it would be reorganised into four independently operated sections, including ones for aviation and financial business, and that all equity held by its old shareholders would be wiped out.

In the 2010s HNA Group used a $50 billion global acquisition spree, mainly fuelled by debt, to build an empire with stakes in businesses from Deutsche Bank (DE:DBKGn) to Hilton Worldwide.

But its spending drew scrutiny from the Chinese government and overseas regulators. As concerns grew over its mounting debts, it sold assets such as airport services company Swissport and electronics distributors Ingram Micro to focus on its airline and tourism businesses.

($1 = 6.4662 Chinese yuan renminbi)

HNA to hold creditor meeting; restructuring plan folds entities into one group – document

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Up Next


Other Articles