HONG KONG, 1 February 2021: HNA Group, the parent company of Hainan Airlines, has filed for bankruptcy and reorganization after financial struggles that came to a head during the Covid-19 crisis, China Daily reported Saturday.
Hainan High People’s Court notified the group that creditors had sought the company’s bankruptcy and restructuring, after a government-led effort to rework its debts failed.
HNA said it would cooperate with the court’s review and push forward debt restructuring. It will also support the court’s efforts to protect the legitimate rights and interests of the creditors and ensure everyday operations of the company in the meantime.
The company will embark on measures, such as debt transfer, debt-swaps and debt restructuring, and look for new strategic investors, according to the China Daily report.
The group has a financial interest in 13 airlines including Hainan Airlines with around 900 aircraft worldwide. It is involved in more than 2,300 companies.
(Source: China Daily)