Shares of companies related to HNA Group simultaneously slipped in the morning session of February 1 after the news of China’s largest private aviation group on the bankruptcy side.
|HNA Group used to spend $ 50 billion on global acquisitions. Photo: Reuters|
Last weekend, HNA Group, “shark” M&A once in China, said the lenders filed bankruptcy and restructured the corporation with the court of Hainan, China.
Shares of companies related to HNA Group, including: Hainan Airlines, HNA Innovation, CCOOP Group, HNA Technology Bohai Leasing, and HNA Infrastructure Investment Company (HNA Infrastructure), all slipped from 4, 7 – 9.8%.
In addition, Hainan Airlines, HNA Infrastructure, and CCOOP said that shareholders and stakeholders embezzled a total of 61.5 billion yuan ($ 9.57 billion), but these three companies did not issue. information about the identity of the shareholders.
Aviation is the core business of HNA Group. Before that, “shark” HNA Group used to spend up to 50 billion USD on global acquisitions, to acquire shares of large corporations, from Deutsche Bank to Hilton. However, this amount is mainly structured from loans.
The Chinese government and other countries have put HNA Group’s spending activities under investigation. Concerns increased when the debt burden of this group was growing. In 2017, the group started to divest from airport service company Swissport (Switzerland) and a distributor of information technology products (US) to focus on two main businesses – aviation and travel.
Founded in 1993, HNA Group has grown from a small regional airline headquartered in Hainan Island, China to a giant corporation. At one point, the HNA Group employed hundreds of thousands of workers worldwide and owned assets worth at least 1 trillion yuan (about $ 154.8 billion).
“Curled up” under billions of dollars in debt, this troubled corporation has tried to dispose of its assets. The decline of the HNA Group is considered one of the biggest collapses in the history of Chinese companies.
Currently, HNA Group still holds stakes in a number of Chinese and international airlines, such as Hong Kong Airlines. In addition to financial difficulties, HNA also faces many lawsuits from investors and customers that the group is owed, including consulting firm Deloitte.