Creditors of China’s embattled HNA Group have given the go-ahead to the company’s restructuring plan, marking the next step in HNA’s recovery after being placed in bankruptcy administration in February, reports Reuters.
HNA will receive strategic investment of RMB 38 billion ($5.88 billion) after its restructuring, which will go to 11 of its entities including its flagship carrier Hainan Airlines.
In the 2010s, HNA used a $50 billion global acquisition spree, mainly fuelled by debt, to build an empire with stakes in businesses from Deutsche Bank to Hilton Worldwide. But its spending drew scrutiny from the Chinese government and overseas regulators. As concerns grew over its mounting debts, it sold assets such as airport services company Swissport and electronics distributors Ingram Micro to focus on its airline and tourism businesses.