HNA once wanted to rule the world. Now facing bankruptcy

HNA once wanted to rule the world.  Now facing bankruptcy

HNA said in a statement on Friday that the Hainan-based company’s creditors had asked a Chinese court to approve the company’s plans to declare bankruptcy. Creditors said the consortium could not pay its debts.

The bankruptcy filing marks a steep drop for one of the nation’s most prominent corporations. HNA began its life as an airline but has grown rapidly through investments in real estate, financing and overseas acquisitions, becoming one of the most important players in the private sector in China.

Starting in 2015, HNA embarked on a $ 40 billion shopping spree that included investments in Hilton (LDS) And the German bank (DB). By the end of 2017, HNA’s assets exceeded 1.2 trillion yuan ($ 186 billion).

But these acquisitions were built on a lot of debt, which reached 707 billion yuan ($ 110 billion) by June 2019. The company’s problems were exacerbated by the coronavirus pandemic, and in February 2020, government officials took control of Hainan. At the company’s request, the authorities set up a “working group” with other agencies in an effort to solve the financial crisis afflicting HNA.

The impending HNA bankruptcy is also the latest sign of the demise of some of China’s most aggressive global dealmakers. It was Anbang Insurance, another large conglomerate that made massive purchases abroad It was taken over by Chinese organizers in February 2018. It owned a Waldorf Astoria and strategic hotels and resorts.

Meanwhile, Beijing is trying to tighten its grip on the country’s private sector. Much of the scrutiny of companies like HNA and Anbang began in 2017, when regulators began to look closely at their flashy overseas deals, concerned about the liquidity risk.

In the years since, Chinese officials have taken other steps to keep private companies online. For example, the Chinese Communist Party ruled last September. Post an unusually explicit set of instructions Which calls on its members to “educate businessmen in the private sector to arm their minds with it.” [Xi’s] The ideology of socialism. “
Recently, regulators have also been looking for ways to wipe out the country’s huge tech industry. Ali Baba (Baba) It was Recently, the goal of achieving antitrust And its financial subsidiary, Ant Group, has been asked to reform its business.
READ  Research in Israel indicates that two doses of Pfizer are "99.96% effective"

Добавить комментарий

Ваш адрес email не будет опубликован. Обязательные поля помечены *