Chinese police take away HNA chairman, CEO on suspicion of crimes

Above Article Content Ad

SHANGHAI, Sept 24 (Reuters) – China’s HNA Group, as soon as one of many nation’s most acquisitive conglomerates, stated on Friday that its chairman and its chief govt had been taken away by police on account of suspected prison offences.

The corporate, which was positioned in chapter administration in February, stated in an announcement on its official WeChat account it had been notified by police in its dwelling province of Hainan, southern China, that Chairman Chen Feng and CEO Tan Xiangdong had been taken.

“The operations of HNA Group and its member corporations are steady and orderly, and the chapter and restructuring work is progressing easily in keeping with the legislation,” the corporate stated.

A separate HNA assertion on Friday stated the corporate’s Communist Social gathering members had been knowledgeable in a gathering that police had taken away Chen and Tan. Attendees had been urged to strengthen the social gathering’s management in HNA.

Within the 2010s HNA Group, whose flagship enterprise is provider Hainan Airways , used a $50 billion world acquisition spree, primarily fuelled by debt, to construct an empire with stakes in companies from Deutsche Financial institution to Hilton Worldwide.

However its spending drew scrutiny from the Chinese language authorities and abroad regulators. As issues grew over its mounting money owed, it bought property resembling airport providers firm Swissport and electronics distributors Ingram Micro to concentrate on its airline and tourism companies.

In early 2020, after the COVID-19 pandemic paralysed journey demand, the Hainan authorities despatched in a piece group to HNA to assist resolve its liquidity issues.

Final week HNA stated it could be reorganised into 4 independently operated sections, together with ones for aviation and monetary, and that each one fairness held by its outdated shareholders can be worn out after the reorganisation.

Chen, 68, turned HNA’s sole chairman in 2018 when his co-founder after which co-chairman Wang Jian in what native police stated gave the impression to be an unintended fall from a wall whereas posing for {a photograph}.

54-year-old Tan Xiangdong, also called Adam Tan, turned HNA Group’s CEO in 2016. He stepped down as chairman of Dublin-based plane leasing big Avolon, by which HNA affiliate Bohai Leasing owns a majority stake, in February this yr.

Hainan Airways stated in a submitting to the Shanghai Inventory Trade earlier on Friday that buying and selling in its shares can be halted on Monday, as members in its restructuring meet for discussions, and would resume on Tuesday.

The inventory is up 48% year-to-date.

Chinese language shares have been rattled in latest weeks by issues over the monetary well being of property developer China Evergrande Group , a collapse of which might ship shockwaves via China’s economic system and past.

Reporting by Brenda Goh; Extra reporting by Twinnie Siu and Min Zhang; Writing by Tom Daly; Enhancing by Philippa Fletcher and Jan Harvey


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button