Showing posts with label HNA. Show all posts
Showing posts with label HNA. Show all posts

26 May, 2020

Hainan governor says HNA's liquidity issues can be solved

The governor of China’s Hainan province told Reuters he believes HNA Group will eventually resolve its liquidity issues, adding that a government-led working group had helped mitigate the impact of the coronavirus pandemic for the troubled aviation and tourism group.

Responding to written questions from Reuters, Hainan Governor Shen Xiaoming did not go in detail into how the working group was helping HNA, saying only that steps taken so far had helped to reassure creditors.

“The working group has effectively helped stabilise the confidence of creditors, the market and HNA’s employees,” Shen wrote, adding that as a result the company was still in business, reports Reuters. 

01 March, 2020

HNA asks China's Hainan government for help

HNA Group has asked the government of China’s province of Hainan to lead a work group dedicated to resolving its increasing liquidity risks after a slowdown in business caused by the coronavirus outbreak.

HNA Group is not able to thoroughly deal with liquidity risks itself, the company said in a post on its official WeChat account on Saturday, news agency Reuters reports. 

HNA directly owns or holds stakes in a number of local Chinese carriers, including Hainan Airlines, and is among many companies pressured by the coronavirus outbreak that has forced widespread flight cancellations.

The work group is being led by Gu Gang, chairman of Hainan Development Holdings Co., an investment arm of the government of the southern province, the WeChat post said.

Officials from the Hainan Yangpu Economic Development Zone, the Civil Aviation Administration of China’s Central and Southern Regional Administration and China Development Bank are also involved in the work team, HNA said.

26 August, 2019

More sales at the struggling HNA Group.

RRJ Capital, an Asian private equity firm has formalised a consortium to invest in the troubled HNA Group to the tune of $4 billion, according to local sources. 

HNA has had to offer for sale a number of its assets, including hotels, real estate, and now its US electronics distributor Ingram Micro Inc.  It was only a relatively short time ago that the firm had purchased Ingram for around US$6 billion, part of a raft of investments totalling around US$50 over the last five or so years.

There is still a possibility the airline side of the HNA group could be broken up and offered for sale as the group struggles to stem debts and losses as well as complying with new Chinese regulations and restrictions. In March it confirmed its budget carrier Hong Kong Express Airways was to be sold to Cathay Pacific Airways for HK$2.25 billion US$287 million in cash.

It is not the first time RRJ Capital has purchased businesses from HNA,  earlier this year they agreed to take on the airline caterer Gategroup Holding AG from HNA.  The Swiss-based company was tightlipped about the total sales price, however, according to analysts, it's likely that a cool US$2.8 billion changed hands. 

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19 April, 2019

Trouble at Hong Kong Airlines as shareholders battle it out

The Chinese HNA Group has strongly denied accusations of embezzlement, financial irregularities and mismanagement made by a rival group of shareholders in Hong Kong Airlines (HKA) as the two battle for control of the troubled airline.

Zhong Guosong and Frontier Investment Partner hold 61% of the firm and made the allegations earlier this week as well as declaring they had taken control of the carrier as well as making Zhong Guosong the chairman after a special extraordinary shareholder meeting on Tuesday.

According to local media, an investigation has been started into the embezzlement of Hong Kong Airlines assets and other serious financial misappropriation by the HNA Group.  However, the Chinese conglomerate refuses the allegations,  a spokesperson told news agency Reuters they were flase, whilst assuring that the "HNA Group is committed to the highest standards of integrity in all of its activities and expects the same of all of its representatives,"