Adds element on claims, HNA declining to remark
BEIJING, June 4 (Reuters) – China’s HNA Group Co HNAIRC.UL stated some 67,400 collectors are in search of a complete of 1.2 trillion yuan ($187 billion), in line with an individual who attended the conglomerate’s on-line assembly for collectors on Friday.
The corporate has confirmed 405.7 billion yuan in claims as legitimate and has rejected 353.5 billion yuan in claims, the particular person quoted Ren Qinghua, the pinnacle of HNA’s liquidation workforce, as saying.
One other 156.5 billion yuan in claims are being assessed as a part of a preliminary assessment whereas some claims have but to be reviewed, added the particular person.
HNA Group and its associated corporations are “severely bancrupt” and it’s unclear whether or not strategic traders might be launched within the short-term, the particular person additionally quoted Ren as saying.
The particular person was not authorised to talk to media on the matter and declined to be recognized.
HNA declined to remark.
After collectors filed a petition, a Hainan courtroom positioned the as soon as extremely acquisitive HNA in chapter administration in February and in March it gave the go-ahead for 321 associated corporations to be merged as a part of the conglomerate’s restructuring.
Beneath Chinese language regulation, a six-month interval is often given for restructuring though that may be prolonged for 3 months. If restructuring targets agreed with regulators and collectors usually are not met by that point, then a agency is damaged up and its property are bought off.
HNA, whose flagship enterprise is Hainan Airways 600221.SS, used a $50 billion debt-fuelled acquisition spree to construct an empire that included stakes in companies from Deutsche Financial institution DBKGn.DE to Hilton Worldwide HLT.N.
However its spending and debt ranges drew scrutiny from the Chinese language authorities and abroad regulators. Its liquidity woes deepened when the COVID-19 pandemic paralysed journey demand final yr, forcing the corporate to ask the Hainan authorities to step in.
($1 = 6.4052 yuan)
(Reporting by Kevin Huang, Zhang Yan and Ryan Woo; Modifying by Edwina Gibbs)
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