BEIJING, June 4 (Reuters) – China’s HNA Group Co HNAIRC.UL mentioned some 67,400 collectors are looking for a complete of 1.2 trillion yuan ($187 billion), in keeping 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 rejected 353.5 billion yuan in claims, the individual quoted Ren Qinghua, head of HNA’s liquidation crew, as saying. One other 156.5 billion yuan in claims are nonetheless being assessed, the individual added.
HNA Group and its associated firms are “significantly bancrupt” and it’s unclear whether or not strategic traders could be launched within the short-term, the individual additionally quoted Ren as saying.
The individual was not authorised to talk to media on the matter and declined to be recognized.
HNA didn’t instantly reply to a Reuters request for 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 firms to be merged as a part of the conglomerate’s restructuring.
Below Chinese language legislation, 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 should 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 12 months, forcing the corporate to ask the Hainan authorities to step in.
($1 = 6.4052 Chinese language yuan)
(Reporting by Kevin Huang, Zhang Yan and Ryan Woo; Modifying by Edwina Gibbs)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.