HNA Group – an investor or affiliate of more than 18 airlines – has been declared bankrupt. The news follows a period during which it was forced to rein in spending after a serious shopping spree, as Chinese authorities cracked down on highly indebted companies. According to the South China Morning Post, the group has yet to comment, aside from noting it will cooperate with the court’s review, continue its debt restructuring and protect creditors. the company said
HNA Group, one of China’s largest global asset buyers spawned from the country’s largest privately owned airline, has entered bankruptcy restructuring, after a government-led exercise to work out its debt failed to come up with money to repay bondholders and creditors.
The company, based in the Hainan provincial capital of Haikou, was served with a petition on January 29 in the provincial High Court seeking its bankruptcy and for it to undergo restructuring, HNA Group said in a statement on its WeChat account.
The company will cooperate with the court’s review, push forward with the debt restructuring work and support the court to protect the legitimate rights and interests of creditors, HNA Group said. Company executives could not be reached to elaborate.
HNA Group was established on the foundations of Hainan Airlines in 1993 by Chen Feng, who worked for the civil aviation authority before going into business. With a handful of aircraft, Hainan Airlines quickly built a business flying holiday makers and Russian tourists from China’s frigid north to the country’s sole tropical island, long regarded as “China’s Hawaii” for its tropical beaches, azure waters and holiday resorts.
This article was initially published at The Load Star