The Chinese regime has arrested the president and CEO of HNA, one of the country’s largest private groups
Chinese police have arrested the two most important executives of HNA Group, days after one of the largest private conglomerates in the country Split into four separate companies after bankruptcy restructuring.
Founder and Former President of HNA, Chen Feng, and former CEO Adam Tan Xiangdong They were arrested for “alleged crimes”The group stated in a statement on its official WeChat account. The HNA Group and its member companies operate in a stable and orderly manner. The (company) restructuring from bankruptcy is going smoothly and its production and operations have not been affected.”reported, according to South China Morning Newspaper.
The HNA conglomerate was founded on the foundations of Hainan Airlines, the most successful private airline in China.
Over three decades, HNA has gone from being a regional airline to a company One of the largest private companies in China and one of the largest asset purchasers. Much of the growth, with the help of bank loans, began after 2010, when Chen made his goal for HNA to be among the 100 companies on the Fortune list., classified according to their origins.
At its height, HNA’s assets are estimated at 50 billion dollars, spread to the whole world, from the largest participation in Deutsche Bank hits a quarter of Hilton’s hotels and resorts, passes package at Hong Kong’s former Kai Tak Airport.
The asset purchase deal prompted HNA to debt of 500 billion yuan ($77.3 billion).According to Guo Gang, CEO and chairman of the working committee responsible for the group’s business.
After a meeting with 2,700 key group admins who got involved in person and virtually, Joe said they should Strengthen its cohesion and follow the guidelines of the Communist Party of China.
“HNA’s bankruptcy restructuring is in its final stages”She said in a statement to the company, according to the South China Morning Post. “Every business unit must review the hard lessons learned in the last 28 years of development. We must understand that it was the Party and the nation that gave HNA the opportunity to be reborn, and to follow the instructions of the Party.The company stated.
Under the restructuring of HNA, The group will be divided into four parts, each unit operating independently in the sectors of aviation, airports, finance and trade.
Hainan Airlines will receive a strategic investment from Liaoning Fangda Industrial Group, a conglomerate with companies in the coal, steel and pharmaceutical sectors.
In four months, the company paid HK$27.2 billion (US$3.5 billion) for four Kai Tak sites To build luxury apartments overlooking the sea.
Having fallen into financial hardship, she had to sell it all. It earned HK$2.54 billion in the first three, but lost HK$740 million in the past.
HNA Group fue One of four Chinese conglomerates scrutinized for debt-paid asset acquisitions, along with Anbang Group, CEFC Group and Dalian Wanda Group.