Posted on 01/30/2021 6:54:58 PM PST by SeekAndFind
HNA Group, the acquisitive conglomerate once synonymous with China’s global ambitions, has succumbed to its massive debt load and entered bankruptcy proceedings at the behest of its creditors.
The Hainan-based company was served by its creditors on Jan. 29 in the provincial court to begin bankruptcy restructuring, the company announced on its WeChat board. Previously, a government-led effort to restructure its debts failed to sufficiently repay HNA Group’s creditors.
It’s been a precipitous fall for one of China’s highest-profile conglomerates. HNA Group was established by Chen Feng, who worked for the civil aviation authority before starting Hainan Airlines, the flag airline of the southern-most province in China and the crown jewel of HNA Group’s assets.
HNA Group gorged on debt and bank loans to fund its overseas asset purchases. At one point in 2017 HNA Group owned a sprawling portfolio of global assets including a 25 percent stake in Hilton Hotels & Resorts, 10 percent stake in German banking giant Deutsche Bank AG, CIT Group’s aircraft leasing arm, and California-based technology provider Ingram Micro. The company also counted financier George Soros as its largest foreign shareholder.
The acquisition spree ended in 2017 when Beijing’s financial regulators cracked down on foreign acquisitions to stop capital flight out of China and protect its capital reserves. The timing of this roughly coincided with President Donald Trump’s escalating trade dispute with China.
A group of companies including the HNA Group, Anbang Insurance Group, Fosun Group, and Dalian Wanda Group came under intense scrutiny. At their heyday, these Chinese companies frequently outbid corporations and private equity firms in M&A auctions. But their acquisitive nature ended abruptly in 2017. The risky insurer turned asset manager Anbang—famous for its takeover of the Waldorf Astoria hotel in New York City—was taken over by the Chinese Community Party
(Excerpt) Read more at theepochtimes.com ...
So, stocks should go up Monday?/s
“George Soros as its largest foreign investor”
Nations hostile to US➡️Soros➡️Clintons➡️Democrat Party➡️Press
Tough noogies to them!
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