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

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The HNA Group emblem is seen on the constructing of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photograph

SHANGHAI, Sept 27 (Reuters) – Eleven entities belonging to embattled conglomerate HNA Group, together with its flagship provider, Hainan Airways , will maintain a creditor assembly on Monday, in keeping with a doc detailing its debt restructuring plan, seen by Reuters.

Beneath the plan, the 11 entities will likely be reorganised as a gaggle and many of the group’s liabilities will likely be diminished by way of debt-to-equity swaps and shareholder repayments.

Collectors of the entities have reported that they’re owed 397.2 billion yuan ($61.43 billion) of unpaid debt. Solely 161.29 billion yuan of this has been recognised by the court docket and can enter the restructuring course of.

Unsecured collectors who’re owed not more than 100,000 yuan ($15,465.01) in principal debt will likely be repaid in full. Any debt above that stage will likely be paid partly by HNA and different events, and partly in Hainan Airways’ shares, in keeping with the doc.

The collectors’ committee nonetheless should approve the plan, the doc stated.

HNA was positioned in chapter administration in February and a working group created by the federal government of its residence province of Hainan has been addressing the corporate’s liquidity issues.

Late on Friday, the corporate stated its chairman and chief govt had been detained by Chinese language police over suspected prison offences.

HNA has stated that it might be reorganised into 4 independently operated sections, together with ones for aviation and monetary enterprise, and that every one fairness held by its outdated shareholders can be worn out.

Within the 2010s HNA Group 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 offered belongings reminiscent of airport providers firm Swissport and electronics distributors Ingram Micro to give attention to its airline and tourism companies.

($1 = 6.4662 Chinese language yuan renminbi)

Reporting by Samuel Shen, Brenda Goh in Shanghai and Cheng Leng in Beijing; Enhancing by Gerry Doyle

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