A court in Hainan approved the merger and restructuring of 320 affiliates of bankrupt HNA Group into the parent company, paving way for the conglomerate to eventually emerge from bankruptcy, reported Caixin.
HNA Group was designated as administrator of the merger, and creditors will hold their first meeting on June 4, according to a statement issued Monday by the Hainan High People’s Court. The 320 units will be integrated into HNA group’s bankruptcy reorganization, and the group will submit a restructuring plan to the creditor meeting for approval, the court said.
“The 321 companies including HNA group have massive debts on their books, which have the hidden danger of triggering regional and systemic financial risks causing great pressure on the local economy and social development,” the court said. “The case, involving a large number of creditors, employees and other relevant stakeholders, is one with significant risks.”