HNA creditors meeting will be held; The restructuring plan folds the entity into one group

Reuters file photo: The logo of the HNA group is seen in the HNA Plaza building in Beijing, China, February, 201.

SHANGHAI (Reuters) – Eleven members of the MNA Group, including its flagship carrier Hainan Airlines, whose main flight carrier, Hainan Airlines, will hold a credit meeting on Monday, according to a detailed document on the debt restructuring plan seen by Reuters.

Under the plan, the 11 entities will be reorganized as a group and most of the group’s liabilities will be reduced through debt-to-equity swaps and shareholder repayments.

The companies’ red payers said they owed 397.2 billion yuan ($ 61.43 billion) in undisclosed debt. Of this, only 161.29 billion yuan has been recognized by the court and will enter the restructuring process.

Unsecured credit payers whose principal debt does not exceed 100,000 yuan (15 15,465.01) will be repaid in full. According to the documents, any debt above this level will be paid in part to HNA and other parties and shares of Hainan Airlines.

The document states that the donors’ committee must approve the plan.

HNAK was placed in bankruptcy administration in February and a working group formed by the government of its own province Hainan is solving the company’s liquidity problem.

As of late Friday, the company said its chairman and chief executive had been detained by Chinese police for suspected criminal offenses.

HNA said it would restructure into four independently operated divisions, including the aviation and financial business division, and remove all equity held by its old shareholders.

In the 2010s, the HNA group used a 50 50 billion global acquisition effort through a 50 million, largely fueled by debt, to build an empire through business. Deutsche Bank (DE 🙂 Hilton Worldwide.

But the cost has been scrutinized by the Chinese government and foreign regulators. As concerns grew over its oversupply, airport services company Swissport and electronics distributor Ingram Micro sold assets to focus on its airline and tourism business.

($ 1 = 6.4662 renminbi)

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