Two investors chosen for core HNA business

Finance | Agencies and Victor Zhong 13 Sep 2021

The administrators of HNA Group's debt restructuring program have decided on strategic investors for the Chinese conglomerate's airline and airport businesses, Bloomberg reported.

Liaoning Fangda Group Industrial will be the strategic investor for the airline business while Hainan Development Holdings will invest in its airport business, according to exchange filings by Hainan Airlines Holding and HNA Infrastructure Investment Group.

Hainan Airlines and HNA Infrastructure plan to issue new shares to the investors and repay debts. The draft restructuring plan is subject to court approval.

Liaoning Fangda is into carbon, chemicals, medical, steel manufacturing, real estate development, mining, coking, and other services. It markets its products worldwide.

In June, HNA Group said some 67,400 creditors are seeking a total of 1.2 trillion yuan (HK$1.45 trillion), Reuters reported, citing someone at its online meeting with creditors.

It has accepted 405.7 billion yuan of the claims as valid and has rejected others worth 353.5 billion yuan, the person quoted Ren Qinghua, head of HNA's liquidation team, as saying.

Another 156.5 billion yuan in claims are still being assessed while some claims have yet to be reviewed.

After creditors filed a petition, a Hainan court placed the once highly acquisitive HNA in bankruptcy administration in February. In March it gave the go-ahead for 321 companies to be merged as part of the conglomerate's restructuring.

Under the law, a six-month period is usually given for restructuring although that can be extended by three months. If restructuring goals agreed with regulators and creditors are not met by then, a firm is broken up and its assets are sold off.

In other news, Agile Group (3383) dismissed market rumors it will be sold to Poly Developments and Holdings Group - a Shanghai-listed developer - and that due diligence has been completed.

The denial came after Agile checked with its controlling shareholders, an exchange filing showed. The matter has been reported to the police.

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