Chinese conglomerate HNA Group says it has found strategic investors willing to finance its state-run reorganization.
HNA’s restructuring administrators brought in Liaoning Fangda Group Industrial as a strategic investor into the ailing group’s aviation branch, while Hainan Development Holdings is going to invest into HNA’s airport unit, according to the group’s exchange filings, seen by Bloomberg.
HNA Aviation owns a stake in numerous Chinese carriers, including Hainan Airlines – fourth largest airline in the country, as well as Grand China Air, and others. HNA Airport Group, a subgroup of HNA Holdings, operates 16 airports in China.
Both branches were heavily hit by the COVID-19 pandemic, which acted as the last straw for the group which had been heavily in debt even before the crisis.
HNA Group declared bankruptcy in January 2021, following a failed attempt at restructuring. The conglomerate’s reorganization was taken over by the government of Hainan province, which spearheaded the search for strategic investors.