Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
LAXintl
Topic Author
Posts: 25397
Joined: Wed May 24, 2000 12:12 pm

HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 4:47 pm

HNA Group, one of China’s largest global asset buyers spawned from the country’s largest privately owned airline, has entered bankruptcy restructuring, after an exercise to work out its debt failed to come up with money to repay bondholders and creditors.

The company, based in the Hainan provincial capital of Haikou, served a petition on January 29 in the provincial High Court seeking its bankruptcy and for it to undergo restructuring, HNA Group said in a statement.

https://www.scmp.com/business/companies ... sset-buyer

=

No details yet of what will happen to many of the group's global assets including airlines
From the desert to the sea, to all of Southern California
 
User avatar
sunking737
Posts: 1748
Joined: Tue Feb 22, 2005 10:33 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 6:32 pm

Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...
"Don't believe it unless its parked on the ramp, or printed in the schedule...SUBJECT TO CHANGE"
Retired MSP Ramper
 
User avatar
Rajahdhani
Posts: 686
Joined: Wed Sep 28, 2016 3:13 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 6:58 pm

Before we get to thickly into it, can anyone provide resources for how bankruptcies of this scale, and/or of airlines - is handled in the PRC?

Have carriers been successful in reorganizing and emerging to health, after, in the nation?

I would love to do my research, and am limited in regards to past precedent, and/or legal doctrine regarding the current realities. Admittedly I am fluent in neither Mandarin, or Cantonese - so my ability to research has been limited in sources.
 
User avatar
Antaras
Posts: 1332
Joined: Thu Aug 15, 2019 6:18 am

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 7:07 pm

sunking737 wrote:
Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...

Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.
If you disagree with my statement, assume that it was just a joke :duck:
 
jbs2886
Posts: 3126
Joined: Wed Apr 01, 2015 9:07 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 7:25 pm

Antaras wrote:
sunking737 wrote:
Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...

Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.


Agree. Highly unlikely. The smaller airlines are all important to the provincial governments that will likely subsidize or take over their respective airlines. I think Hainan Airlines has foreign investors, too (did Temasek complete its purchase?). Certainly we may see shrinking, but 700 planes? No.
 
Capricorn
Posts: 196
Joined: Mon Jul 27, 2020 1:11 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 7:59 pm

Antaras wrote:
sunking737 wrote:
Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...

Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.


While I would normally agree, the fact that the governmental owned "China 3" are financially also in trouble, raises the possibility that the elimination (or downsizing) of the competition is what the Chinese Central Government is looking for. The Chinese aviation market was already hot prior to C19, especially international flying, therefore the restructuring of HNA might quit possibly be very convenient.

Maybe HNAs bankruptcy triggers some consolidation in the Chinese aviation market.


Source:
https://asia.nikkei.com/Business/Transp ... s-for-2020
 
User avatar
LAXintl
Topic Author
Posts: 25397
Joined: Wed May 24, 2000 12:12 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 8:12 pm

Capricorn wrote:
While I would normally agree, the fact that the governmental owned "China 3" are financially also in trouble, raises the possibility that the elimination (or downsizing) of the competition is what the Chinese Central Government is looking for. The Chinese aviation market was already hot prior to C19, especially international flying, therefore the restructuring of HNA might quit possibly be very convenient.

Maybe HNAs bankruptcy triggers some consolidation in the Chinese aviation market.
Source:
https://asia.nikkei.com/Business/Transp ... s-for-2020


But are they really in trouble? $6bil loss is small compared to over $28.4bil the US3 lost in 2020.

Also the CN3 started to turn the corner by Q3 last year. CZ for example posted Q3 profits, and both CA and CZ are expect to post Q4 profits when they report.

Domestic China traffic volume in November 2020 already recovered to 98% of pre-pandemic levels per IATA.
From the desert to the sea, to all of Southern California
 
jbs2886
Posts: 3126
Joined: Wed Apr 01, 2015 9:07 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 8:35 pm

LAXintl wrote:
Capricorn wrote:
While I would normally agree, the fact that the governmental owned "China 3" are financially also in trouble, raises the possibility that the elimination (or downsizing) of the competition is what the Chinese Central Government is looking for. The Chinese aviation market was already hot prior to C19, especially international flying, therefore the restructuring of HNA might quit possibly be very convenient.

Maybe HNAs bankruptcy triggers some consolidation in the Chinese aviation market.
Source:
https://asia.nikkei.com/Business/Transp ... s-for-2020


But are they really in trouble? $6bil loss is small compared to over $28.4bil the US3 lost in 2020.

Also the CN3 started to turn the corner by Q3 last year. CZ for example posted Q3 profits, and both CA and CZ are expect to post Q4 profits when they report.

Domestic China traffic volume in November 2020 already recovered to 98% of pre-pandemic levels per IATA.


Not disputing that (as it sounds like great news), but how much of the profits are attributable to cargo? I haven't seen the numbers, so is passenger revenue struggling although volume back to normal?
 
oldJoe
Posts: 535
Joined: Fri Jan 10, 2020 11:04 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 8:52 pm

jbs2886 wrote:
LAXintl wrote:
Capricorn wrote:
While I would normally agree, the fact that the governmental owned "China 3" are financially also in trouble, raises the possibility that the elimination (or downsizing) of the competition is what the Chinese Central Government is looking for. The Chinese aviation market was already hot prior to C19, especially international flying, therefore the restructuring of HNA might quit possibly be very convenient.

Maybe HNAs bankruptcy triggers some consolidation in the Chinese aviation market.
Source:
https://asia.nikkei.com/Business/Transp ... s-for-2020


But are they really in trouble? $6bil loss is small compared to over $28.4bil the US3 lost in 2020.

Also the CN3 started to turn the corner by Q3 last year. CZ for example posted Q3 profits, and both CA and CZ are expect to post Q4 profits when they report.

Domestic China traffic volume in November 2020 already recovered to 98% of pre-pandemic levels per IATA.


Not disputing that (as it sounds like great news), but how much of the profits are attributable to cargo? I haven't seen the numbers, so is passenger revenue struggling although volume back to normal?


Much of the profit must come out of cargo. CZ ( other airlines too ) for example had an special offer "All you can fly " where you can fly inside of China for six months as much as you want for ~550 US$ ! This raises the pax numbers but not the revenue I guess
 
jbs2886
Posts: 3126
Joined: Wed Apr 01, 2015 9:07 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 8:54 pm

oldJoe wrote:
jbs2886 wrote:
LAXintl wrote:

But are they really in trouble? $6bil loss is small compared to over $28.4bil the US3 lost in 2020.

Also the CN3 started to turn the corner by Q3 last year. CZ for example posted Q3 profits, and both CA and CZ are expect to post Q4 profits when they report.

Domestic China traffic volume in November 2020 already recovered to 98% of pre-pandemic levels per IATA.


Not disputing that (as it sounds like great news), but how much of the profits are attributable to cargo? I haven't seen the numbers, so is passenger revenue struggling although volume back to normal?


Much of the profit must come out of cargo. CZ ( other airlines too ) for example had an special offer "All you can fly " where you can fly inside of China for six months as much as you want for ~550 US$ ! This raises the pax numbers but not the revenue I guess


Wow. Didn't know about that. Either way, LAXintl's point that the CN3 are fine financially still is valid. I was just curious where that profit was coming from.
 
User avatar
lightsaber
Moderator
Posts: 22382
Joined: Wed Jan 19, 2005 10:55 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 9:00 pm

Rajahdhani wrote:
Before we get to thickly into it, can anyone provide resources for how bankruptcies of this scale, and/or of airlines - is handled in the PRC?

Have carriers been successful in reorganizing and emerging to health, after, in the nation?

I would love to do my research, and am limited in regards to past precedent, and/or legal doctrine regarding the current realities. Admittedly I am fluent in neither Mandarin, or Cantonese - so my ability to research has been limited in sources.

There has never been a bankruptcy on this scale. At least none I recall.

While this is an aviation forum, this bankruptcy effects Chinese real estate, international commercial property, as well as a huge number of aircraft suddenly needing a home from over-expanded airlines in the HNA group.

This is huge.

Lightsaber
7 months without TV. The best decision of my life.
 
MIflyer12
Posts: 9602
Joined: Mon Feb 18, 2013 11:58 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jan 29, 2021 9:09 pm

sunking737 wrote:
Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...


IMHO that's a doomsday scenario, and not a bit likely.

There may be one or more HNA carriers that gets liquidated, but I believe even most of those aircraft will be sold off in pre-arranged deals (not open market) that keep most of the planes in China.
 
Breathe
Posts: 799
Joined: Sat Mar 18, 2017 8:06 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 1:16 am

zeke wrote:
LAXintl wrote:
HNA Group, one of China’s largest global asset buyers spawned from the country’s largest privately owned airline, has entered bankruptcy restructuring, after an exercise to work out its debt failed to come up with money to repay bondholders and creditors.

The company, based in the Hainan provincial capital of Haikou, served a petition on January 29 in the provincial High Court seeking its bankruptcy and for it to undergo restructuring, HNA Group said in a statement.

https://www.scmp.com/business/companies ... sset-buyer

=

No details yet of what will happen to many of the group's global assets including airlines


I posted this in the covid reference thread around 12 hours ago and the mods deleted it. My source was global times.

HNA group has over 900 aircraft.

HNA aviation is one of the biggest arms

“ HNA Aviation is affiliated with multiple Chinese airlines. These include the following:[25][26][27]

Air Chang'an
Beijing Capital Airlines
Fuzhou Airlines
Grand China Air
GX Airlines
Hainan Airlines
Lucky Air
Suparna Airlines
Tianjin Airlines
Urumqi Air
West Air
The group also has stakes in some carriers based outside the Chinese mainland, including Hong Kong Airlines as well as Africa World Airlines, Azul Brazilian Airlines (23.7%),[28] Comair (6.2%),[29] MyCargo Airlines,[30] TAP Air Portugal (2.5%) and a pending stake in Virgin Australia (13%).[31]”

Source https://en.m.wikipedia.org/wiki/HNA_Group

Now the key to all of this I see is it is HNA group that has been reported into bankruptcy. What if any impact this has on HNA Aviation is undetermined.

From a consumer point of view the confusion is bound to impact sales going forward.

Ground handling business Swissport is also part of HNA Group.
 
eamondzhang
Posts: 1926
Joined: Thu Sep 23, 2010 8:23 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 2:26 am

It's more the group company (shell) not the airline that is affected. Much of my sources indicated that aviation part of the group will be fine through this crisis.

Having said that we all agreed this bankruptcy is inevitable and long overdue.

Michael
 
Speedy752
Posts: 90
Joined: Fri Dec 11, 2020 4:13 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:42 am

It’s about time. Probably took the last few years to unwind their mess into something that wouldn’t crater the economy when they declared bankruptcy. I do wonder what will happen to all their functioning assets that they overpaid for (Swiss port, Hilton, Ingram)
 
User avatar
Rajahdhani
Posts: 686
Joined: Wed Sep 28, 2016 3:13 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:54 am

[photoid][/photoid]
lightsaber wrote:
There has never been a bankruptcy on this scale. At least none I recall.

While this is an aviation forum, this bankruptcy effects Chinese real estate, international commercial property, as well as a huge number of aircraft suddenly needing a home from over-expanded airlines in the HNA group.

This is huge.

Lightsaber


Major thank you for not only the response, but confirming what I had feared. I can't recall a 'reorganization' of this size, for the PRC.

Adding to your topic, and as an aside - these were the conditions as of 2017:

https://www.scmp.com/business/companies/article/2095133/hnas-global-shopping-spree-may-put-it-fortunes-100-list"HNA, which counts Hainan Airlines, Hong Kong Airlines and 25 per cent of the Hilton hotels group among its one trillion yuan (US$145 billion) of assets, owns 330 billion yuan in overseas assets since its major acquisitions began in 2010. The Hainan-based company, which generates 600 billion yuan in annual revenue, was ranked 353rd on Fortune’s 2016 list. "


Backing to the topic,

They have stakes in:

- Azul (and Swissport International) {as of 2015};

https://www.nytimes.com/2015/11/25/business/dealbook/brazilian-airline-azul-sells-stake-to-hna-group-of-china.html"Azul Linhas Aéreas Brasileiras announced on Tuesday that it had sold a 23.7 percent stake to HNA Group of China for $450 million.
HNA, which earlier this year bought Swissport International, an air cargo services company, for $2.8 billion, owns China’s Hainan Airlines. It is also active in hospitality, retail and financial services. It had about $28 billion in revenue last year. "


- Comair {also, 2015};

https://centreforaviation.com/analysis/reports/hnahainan-airlines-buys-62-of-south-africas-comair-accelerating-china-africa-aviation-links-227225 "China's expansive HNA Group, including flagship carrier Hainan Airlines, is continuing its international acquisition strategy with a USD13 million investment for a 6.2% stake in South Africa's Comair."


- Virgin Australia {as of 2016};

https://www.virginaustralia.com/au/en/about-us/media/2016/VA-Strategic-Alliance-HNA-Equity-investment/In support of the alliance, HNA will make an equity investment in the Virgin Australia Group. The investment will be made in the form of an A$159 million placement of shares at an issue price of A$0.30 per share, which represents a premium of 7.1 per cent to the last close on 30 May 2016. Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group.


...and really coming home to your point;

As for Avolon;

https://www.leasinglife.com/news/covid-19-may-prompt-china-to-seize-control-of-irish-aviation-lessors-majority-shareholder/"Avolon’s is 70% owned by an indirect subsidiary of Bohai Leasing Co Ltd, a public company listed on the Shenzhen Stock Exchange and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges.
HNA is a majority shareholder in Bohai Leasing. Avolon operates as an independent company from HNA and has a robust shareholder framework between Bohai Leasing and ORIX."


Avolon's Fleet {as of 12/31/2020}:

https://www.avolon.aero/our-fleet
Screen Shot 2021-01-29 at 10.37.27 PM.png



...and even airports themselves;

- Frankfurt Hahn {HHN};

https://ec.europa.eu/commission/presscorner/detail/en/IP_17_2221"Frankfurt-Hahn airport is currently loss-making. Since 2009, it has been controlled by the Land of Rhineland-Palatinate, which on 1 March 2017 signed a share purchase agreement with the Chinese HNA Group for the sale of its 82.5% of shares in the airport.

In its assessment, the Commission found that public funding to Frankfurt-Hahn airport will cover the operating losses whilst HNA Group makes the necessary private investment to enable the airport's return to viability, which is due in 2023"


Dear Lord, that's a lot - and that's only some of them, with me not really tackling the non-aviation and not really focusing on their Asian and Chinese assets as much.

This is really quite large, and has rather large repercussions. I don't know how else to say it but, big. I am hoping to see how it will come together, but these are such large and internationally ranging in some cases - that it will be hard to see how it all comes together, and not be broken into smaller, working pieces.
Last edited by Rajahdhani on Sat Jan 30, 2021 3:58 am, edited 1 time in total.
 
User avatar
mercure1
Posts: 5186
Joined: Sun Jul 13, 2008 5:13 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:55 am

Breathe wrote:
Ground handling business Swissport is also part of HNA Group.


:shakehead:

HNA stake was divested last year to a group of investment management firms
mercure f-wtcc
 
User avatar
chunhimlai
Posts: 698
Joined: Wed Jun 03, 2015 11:03 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 5:33 am

The relationship between HNA and Hainan Airline likes Virgin Group and Virgin Atlantic
 
User avatar
zeke
Posts: 16080
Joined: Thu Dec 14, 2006 1:42 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 6:58 am

chunhimlai wrote:
The relationship between HNA and Hainan Airline likes Virgin Group and Virgin Atlantic


Incorrect, Hainan Airlines is a 100% subsidiary of HNA, VS is only around 30% owned by the Virgin Group.
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949
 
User avatar
chunhimlai
Posts: 698
Joined: Wed Jun 03, 2015 11:03 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 8:55 am

zeke wrote:
chunhimlai wrote:
The relationship between HNA and Hainan Airline likes Virgin Group and Virgin Atlantic


Incorrect, Hainan Airlines is a 100% subsidiary of HNA, VS is only around 30% owned by the Virgin Group.


Hainan Airlines itself is a listed company in Shanghai stock exchange.
HNA group directly hold 3.5% of shares.

Grand China Air is the largest shareholders (~23%) of Hainan Airlines. Its largest shareholders is the wholly subsidies of Hainan government (~25%) and HNA group is the 2nd largest holders (~23%), but HNA groups related subsidies hold significant amount of Hainan Airlines shares.
 
User avatar
SQ22
Moderator
Posts: 2290
Joined: Sat Feb 25, 2012 9:29 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 9:24 am

May I remind you to provide a link to your source when stating facts, thanks.
 
Someone83
Posts: 5303
Joined: Sun Sep 17, 2006 5:47 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 9:52 am

Antaras wrote:
Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.


I see it is more likely that we'll either see some sort of restructuring or the various airlines being absorbed into other. Don't think I even seen a Chinese company go bankrupt and liquidate?
 
chonetsao
Posts: 930
Joined: Sun Nov 06, 2005 3:55 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 10:18 am

Someone83 wrote:
Antaras wrote:
Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.


I see it is more likely that we'll either see some sort of restructuring or the various airlines being absorbed into other. Don't think I even seen a Chinese company go bankrupt and liquidate?


First, China would never allow CN3 enters bankrupted. In fact HNA, the number 4, allowed to enter the process is extraordinary.

China Eastern was close to liquidate until Shanghai Municipal Government stepped in, injected then profitable Shanghai Airlines into China Eastern and saved the airline from go under back in 2009 after the disaster during 2007-2008 and SQ take over saga.

What happened to SOE in airline sector in China is, the state will step in when necessary due to its important role in the economy structure. The merger happened before or around 2000 among China Northern and China Southern, Southwestern and Air China...etc. are all sort of 'protection' in disguise.

When a private airline are close to liquidate, the provincial government will come in with deep pocket to save the airline for a while. For example, Hongtu Airlines (Now Air Travel), got injection from Hunan Provincial Government when its parent company based in Yunnan got in trouble. Another example is the ex HNA airlines, Suparna, got snapped by Jiangsu Provincial government.

One of the recent Chinese private airline got liquidated was East Star Airlines based in Wuhan, it got liquidated 30th March 2009. Part of its assets and routes was taken over by Air China eventually. There might be other examples but not on top of my head.
 
User avatar
zeke
Posts: 16080
Joined: Thu Dec 14, 2006 1:42 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 11:10 am

chunhimlai wrote:
Hainan Airlines itself is a listed company in Shanghai stock exchange.
HNA group directly hold 3.5% of shares.

Grand China Air is the largest shareholders (~23%) of Hainan Airlines. Its largest shareholders is the wholly subsidies of Hainan government (~25%) and HNA group is the 2nd largest holders (~23%), but HNA groups related subsidies hold significant amount of Hainan Airlines shares.


I am now very confused, the CAPA profile has the following https://centreforaviation.com/data/prof ... -group-hna

“ Hainan Airlines Group (HNA) is a large privately-owned airline group based in Hainan, China. Originally founded in 1989, Hainan Airlines is part of Chinese conglomerate HNA Group, and together with its affiliates the Hainan Airlines Group operates an extensive network of domestic and international services from its main hub at Haikou Meilan International Airport.

The Hainan Airlines Group is headquartered in Haikou City, Hainan and is listed on the Shanghai Stock Exchange (SSE: 600221). Members of the Hainan Airlines Group include:

Hainan Airlines (since 1989)
Air Changan
Lucky Air (since 2004)
Tianjin Airlines (through Grand China Airlines Holding Company, since 2004)
Hong Kong Airlines (since 2006)
Beijing Capital Airlines (since May-2010)
China Xinhua Airlines (since 2011)
Fuzhou Airlines (since Oct-2014)
Guangxi Beibu Gulf Airlines (since Feb-2015)
West Air
Shanxi Airlines
Urumqi Air (30% stake, following strategic agreement with Xinjiang Government in Nov-2018)
Deer Jet
Azul (Aug-2016)
Hong Kong Air Cargo
Air Guilin
Suparna Airlines (previously Yangtze River Express and Yangzte River Airlines)
Hubei Airlines (proposed, 2019)
Other affiliates include:

Virgin Australia Holdings”
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949
 
Capricorn
Posts: 196
Joined: Mon Jul 27, 2020 1:11 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 12:19 pm

Unfortunately recent information in English regarding the ownership of Hainan Airlines seems scarce, but per annual report 2014, the last one available in English, it seems to be indeed the case that Grand China Air was at one point a significant investor into Hainan Airlines (not the Group)

Annual Report 2014
On 29 June 2006, the Company completed a non-public offerings with 2,800,000 thousand shares issued, of which 1,650,000 thousand shares were issued to Grand China Air. Together with previously owned 53,108 thousand shares, Grand China Air held 1,703,108 thousand shares of the Company after the issuance.

On 3 May 2012, as approved by CSRC (China Securities Regulatory Commission), the Company completed another non-public share offerings of 1,965,600 thousand A shares with lock-up period of 12 months (Note 4(32)). After the completion of the above share issuance, the Company’s share capital was increased to RMB6,091,091 thousand, among which RMB1,716,395 thousand is held by Grand China Air, whose direct shareholding percentage in the Company was diluted to 28.18%, but remained as the single largest shareholder of the Company.


Source:
https://www.hainanairlines.com/go/Annua ... v=2013.8-2


Per English wiki (which probably is not the most up to date and accurate), Hainan Development Holdings was (still is?) the largest share holder of Grand China Air. Grand China Air seems to be the perfect vehicle for 1) Governmental / outside cash injection and 2) Governmental Control. It would not surprise me if the Government of Hainan would take over Hainan Airlines if HNA fails to adequately restructure its business.

Source
https://en.wikipedia.org/wiki/Grand_China_Air
 
User avatar
c933103
Posts: 5537
Joined: Wed May 18, 2016 7:23 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:26 pm

Antaras wrote:
sunking737 wrote:
Oh boy. Maybe another 700 planes to hit the market, if all 17 airlines shut down..Watch the prices of used planes drop now...

Don't think so. HNA Group may sell all of its airlines to save itself first. Personally, I see a rare chance that all of the HNA carriers were shut down at once.
With the potential intervention from the PRC Gov, it is getting even more unlikely.

This filing for bankruptcy not just cover the main HNA groups, butalso cover the bankruptcy application of its ten airlines subsidiary, twenty infrastructure and airport companies, and some dozens other companies
Rajahdhani wrote:
Before we get to thickly into it, can anyone provide resources for how bankruptcies of this scale, and/or of airlines - is handled in the PRC?

Have carriers been successful in reorganizing and emerging to health, after, in the nation?

I would love to do my research, and am limited in regards to past precedent, and/or legal doctrine regarding the current realities. Admittedly I am fluent in neither Mandarin, or Cantonese - so my ability to research has been limited in sources.

This is most likely THE largest similar case in PRC's history so we don't have much references to look at.
I don't recall hearing about news of airlines bankruptcy in China either, although some airlines were being merged into the cureent big three after initial split up of CAAC into civil airlines that created some smaller airlines that couldn't be sustained
It's pointless to attempt winning internet debate 求同存異 よく見て・よく聞いて・よく考える
Fitting foreign event into local context for lessons will only be able to tell local values instead of foreign ones
You're now at your youngest moment in your remaining life
 
User avatar
c933103
Posts: 5537
Joined: Wed May 18, 2016 7:23 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:33 pm

Capricorn wrote:
Unfortunately recent information in English regarding the ownership of Hainan Airlines seems scarce, but per annual report 2014, the last one available in English, it seems to be indeed the case that Grand China Air was at one point a significant investor into Hainan Airlines (not the Group)

Annual Report 2014
On 29 June 2006, the Company completed a non-public offerings with 2,800,000 thousand shares issued, of which 1,650,000 thousand shares were issued to Grand China Air. Together with previously owned 53,108 thousand shares, Grand China Air held 1,703,108 thousand shares of the Company after the issuance.

On 3 May 2012, as approved by CSRC (China Securities Regulatory Commission), the Company completed another non-public share offerings of 1,965,600 thousand A shares with lock-up period of 12 months (Note 4(32)). After the completion of the above share issuance, the Company’s share capital was increased to RMB6,091,091 thousand, among which RMB1,716,395 thousand is held by Grand China Air, whose direct shareholding percentage in the Company was diluted to 28.18%, but remained as the single largest shareholder of the Company.


Source:
https://www.hainanairlines.com/go/Annua ... v=2013.8-2


Per English wiki (which probably is not the most up to date and accurate), Hainan Development Holdings was (still is?) the largest share holder of Grand China Air. Grand China Air seems to be the perfect vehicle for 1) Governmental / outside cash injection and 2) Governmental Control. It would not surprise me if the Government of Hainan would take over Hainan Airlines if HNA fails to adequately restructure its business.

Source
https://en.wikipedia.org/wiki/Grand_China_Air

https://3g.163.com/money/article/G1J6P2 ... ptation=pc
Grand China Air have also being filed for bankrupt restructuring
It's pointless to attempt winning internet debate 求同存異 よく見て・よく聞いて・よく考える
Fitting foreign event into local context for lessons will only be able to tell local values instead of foreign ones
You're now at your youngest moment in your remaining life
 
User avatar
c933103
Posts: 5537
Joined: Wed May 18, 2016 7:23 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 3:55 pm

Capricorn wrote:
Unfortunately recent information in English regarding the ownership of Hainan Airlines seems scarce, but per annual report 2014, the last one available in English, it seems to be indeed the case that Grand China Air was at one point a significant investor into Hainan Airlines (not the Group)

Annual Report 2014
On 29 June 2006, the Company completed a non-public offerings with 2,800,000 thousand shares issued, of which 1,650,000 thousand shares were issued to Grand China Air. Together with previously owned 53,108 thousand shares, Grand China Air held 1,703,108 thousand shares of the Company after the issuance.

On 3 May 2012, as approved by CSRC (China Securities Regulatory Commission), the Company completed another non-public share offerings of 1,965,600 thousand A shares with lock-up period of 12 months (Note 4(32)). After the completion of the above share issuance, the Company’s share capital was increased to RMB6,091,091 thousand, among which RMB1,716,395 thousand is held by Grand China Air, whose direct shareholding percentage in the Company was diluted to 28.18%, but remained as the single largest shareholder of the Company.


Source:
https://www.hainanairlines.com/go/Annua ... v=2013.8-2


Per English wiki (which probably is not the most up to date and accurate), Hainan Development Holdings was (still is?) the largest share holder of Grand China Air. Grand China Air seems to be the perfect vehicle for 1) Governmental / outside cash injection and 2) Governmental Control. It would not surprise me if the Government of Hainan would take over Hainan Airlines if HNA fails to adequately restructure its business.

Source
https://en.wikipedia.org/wiki/Grand_China_Air

https://finance.sina.cn/china/gncj/2021 ... 055.d.html
Apparently, even Chinese government working group need to spend multiple months inside HNA to identify what is actually the structure between all those companies under HNA and not even HNA themselves can say clearly by then.
The one who's responsible claim the product is like the legendary artisan work depicting the entire capital of an ancient Chinese dynasty on a festive day.
It's pointless to attempt winning internet debate 求同存異 よく見て・よく聞いて・よく考える
Fitting foreign event into local context for lessons will only be able to tell local values instead of foreign ones
You're now at your youngest moment in your remaining life
 
User avatar
Rajahdhani
Posts: 686
Joined: Wed Sep 28, 2016 3:13 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 5:05 pm

c933103 wrote:
Capricorn wrote:
Unfortunately recent information in English regarding the ownership of Hainan Airlines seems scarce, but per annual report 2014, the last one available in English, it seems to be indeed the case that Grand China Air was at one point a significant investor into Hainan Airlines (not the Group)

Annual Report 2014
On 29 June 2006, the Company completed a non-public offerings with 2,800,000 thousand shares issued, of which 1,650,000 thousand shares were issued to Grand China Air. Together with previously owned 53,108 thousand shares, Grand China Air held 1,703,108 thousand shares of the Company after the issuance.

On 3 May 2012, as approved by CSRC (China Securities Regulatory Commission), the Company completed another non-public share offerings of 1,965,600 thousand A shares with lock-up period of 12 months (Note 4(32)). After the completion of the above share issuance, the Company’s share capital was increased to RMB6,091,091 thousand, among which RMB1,716,395 thousand is held by Grand China Air, whose direct shareholding percentage in the Company was diluted to 28.18%, but remained as the single largest shareholder of the Company.


Source:
https://www.hainanairlines.com/go/Annua ... v=2013.8-2


Per English wiki (which probably is not the most up to date and accurate), Hainan Development Holdings was (still is?) the largest share holder of Grand China Air. Grand China Air seems to be the perfect vehicle for 1) Governmental / outside cash injection and 2) Governmental Control. It would not surprise me if the Government of Hainan would take over Hainan Airlines if HNA fails to adequately restructure its business.

Source
https://en.wikipedia.org/wiki/Grand_China_Air

https://finance.sina.cn/china/gncj/2021 ... 055.d.html
Apparently, even Chinese government working group need to spend multiple months inside HNA to identify what is actually the structure between all those companies under HNA and not even HNA themselves can say clearly by then.
The one who's responsible claim the product is like the legendary artisan work depicting the entire capital of an ancient Chinese dynasty on a festive day.


This, from 2017 -

Image

Quoting from that article though, something rather impressive:

https://asia.nikkei.com/Business/Company-in-focus-HNA-Group-s-creative-financing-raises-concerns"The group splashed out at least $26 billion on 21 deals, making it China's largest private investor in overseas assets, ahead of internet company Tencent Holdings and the property and leisure conglomerate Dalian Wanda Group, according to data from Dealogic. "


Backing to needing help understanding the corporate structure - Swiss investigators have:

https://www.reuters.com/article/us-hna-group-swiss-dufry-idUSKBN1WA0M2"“FINMA will be registering a complaint with the Criminal Law Division of the Federal Department of Finance,” the markets supervisor said. It said HNA had filed six incorrect reports to the SIX Swiss Exchange between April 2017 and February 2019."

Switzerland's markets supervisor said on Wednesday it will lodge a criminal complaint against Chinese conglomerate HNA Group for an alleged "serious breach" of disclosure rules over a stake it once held in duty free group Dufry. In a separate 2017 case, Swiss officials found HNA provided “untrue” details during its takeover of airline caterer Gategroup. HNA sold Gategroup this year to RRJ Capital, but still owns Swiss cargo handling company Swissport.


...and I think that what really helped me understand this better was the penultimate paragraph:

https://www.reuters.com/article/us-hna-group-swiss-dufry-idUSKBN1WA0M2 "Since Beijing began cracking down on Chinese conglomerates’ rapid debt-fueled global expansions in 2017, HNA has sold more than $25 billion in assets, Dealogic data and Reuters calculations shows. Disposals have included big stakes in the Radisson hotel group, Hilton Hotels, property in New York, Sydney, Shanghai, San Francisco and Hong Kong, regional Chinese airlines and half of its stake in Deutsche Bank "



From China Daily, today:

https://www.chinadailyasia.com/article/156483The provincial government formed a joint working group last year in an effort to streamline the shareholding patterns of more than 2,000 enterprises under HNA Group to get a clear picture of the total assets and debts. Of the more than 2,000 companies, 90 percent of are shell companies, and only around 200 companies are in real business operations, said the executive.
The first batch of 62 companies is part of the 200 companies, taking up nearly 60 percent of the group’s total debts, the source said.
The second phase is expected to involve about 400 companies into bankruptcy and restructuring, which are estimated to take up 85 percent of debts of HNA, according to the source.


So, it seems as if they need to untangle the mess, and they propose to then restructure and reorganize the debt. Big moves, but it can be competently handled.

To relieve some immediate doubts though, and backing to aviation business;

https://www.chinadailyasia.com/article/156483 "The executive said the bankruptcy and restructuring will not affect HNA's aviation business, which comprises 14 companies and 700 commercial aircraft and is the country's fourth largest air carrier."


So, what does this mean regarding the financials around the airline? As many have pointed out, a reorganization of this scale has not occurred in the PRC, and echoing the statements above - this is the big.
 
User avatar
hawaiian717
Posts: 3538
Joined: Tue May 18, 1999 2:46 am

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 5:09 pm

Rajahdhani wrote:
- Virgin Australia {as of 2016};

https://www.virginaustralia.com/au/en/about-us/media/2016/VA-Strategic-Alliance-HNA-Equity-investment/In support of the alliance, HNA will make an equity investment in the Virgin Australia Group. The investment will be made in the form of an A$159 million placement of shares at an issue price of A$0.30 per share, which represents a premium of 7.1 per cent to the last close on 30 May 2016. Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group.


With Virgin Australia’s administration last year, Bain now owns 100% of VA and HNA no longer has a stake.
 
User avatar
Rajahdhani
Posts: 686
Joined: Wed Sep 28, 2016 3:13 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 5:45 pm

hawaiian717 wrote:
Rajahdhani wrote:
- Virgin Australia {as of 2016};

https://www.virginaustralia.com/au/en/about-us/media/2016/VA-Strategic-Alliance-HNA-Equity-investment/In support of the alliance, HNA will make an equity investment in the Virgin Australia Group. The investment will be made in the form of an A$159 million placement of shares at an issue price of A$0.30 per share, which represents a premium of 7.1 per cent to the last close on 30 May 2016. Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group.


With Virgin Australia’s administration last year, Bain now owns 100% of VA and HNA no longer has a stake.


Thank you very much for this!

In reality, many of the other reported stakes might have changed hands (and/or may be in new ones since Covid), so updates on current stakes and ownership rules would also be helpful.
 
User avatar
lightsaber
Moderator
Posts: 22382
Joined: Wed Jan 19, 2005 10:55 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 6:36 pm

eamondzhang wrote:
It's more the group company (shell) not the airline that is affected. Much of my sources indicated that aviation part of the group will be fine through this crisis.

Having said that we all agreed this bankruptcy is inevitable and long overdue.

Michael


We don't know. Opaque financials hide losses, not profits per my experience. Considering how hard it was to find out the organization, I have no hope for the airlines as the parent company was run as a Ponzi scheme with high leverage.

Lightsaber
7 months without TV. The best decision of my life.
 
User avatar
c933103
Posts: 5537
Joined: Wed May 18, 2016 7:23 pm

Re: HNA Group enters bankruptcy restructuring

Sat Jan 30, 2021 6:36 pm

Rajahdhani wrote:
c933103 wrote:
Capricorn wrote:
Unfortunately recent information in English regarding the ownership of Hainan Airlines seems scarce, but per annual report 2014, the last one available in English, it seems to be indeed the case that Grand China Air was at one point a significant investor into Hainan Airlines (not the Group)



Source:
https://www.hainanairlines.com/go/Annua ... v=2013.8-2


Per English wiki (which probably is not the most up to date and accurate), Hainan Development Holdings was (still is?) the largest share holder of Grand China Air. Grand China Air seems to be the perfect vehicle for 1) Governmental / outside cash injection and 2) Governmental Control. It would not surprise me if the Government of Hainan would take over Hainan Airlines if HNA fails to adequately restructure its business.

Source
https://en.wikipedia.org/wiki/Grand_China_Air

https://finance.sina.cn/china/gncj/2021 ... 055.d.html
Apparently, even Chinese government working group need to spend multiple months inside HNA to identify what is actually the structure between all those companies under HNA and not even HNA themselves can say clearly by then.
The one who's responsible claim the product is like the legendary artisan work depicting the entire capital of an ancient Chinese dynasty on a festive day.


This, from 2017 -

Image

Quoting from that article though, something rather impressive:

https://asia.nikkei.com/Business/Company-in-focus-HNA-Group-s-creative-financing-raises-concerns"The group splashed out at least $26 billion on 21 deals, making it China's largest private investor in overseas assets, ahead of internet company Tencent Holdings and the property and leisure conglomerate Dalian Wanda Group, according to data from Dealogic. "


Backing to needing help understanding the corporate structure - Swiss investigators have:

https://www.reuters.com/article/us-hna-group-swiss-dufry-idUSKBN1WA0M2"“FINMA will be registering a complaint with the Criminal Law Division of the Federal Department of Finance,” the markets supervisor said. It said HNA had filed six incorrect reports to the SIX Swiss Exchange between April 2017 and February 2019."

Switzerland's markets supervisor said on Wednesday it will lodge a criminal complaint against Chinese conglomerate HNA Group for an alleged "serious breach" of disclosure rules over a stake it once held in duty free group Dufry. In a separate 2017 case, Swiss officials found HNA provided “untrue” details during its takeover of airline caterer Gategroup. HNA sold Gategroup this year to RRJ Capital, but still owns Swiss cargo handling company Swissport.


...and I think that what really helped me understand this better was the penultimate paragraph:

https://www.reuters.com/article/us-hna-group-swiss-dufry-idUSKBN1WA0M2 "Since Beijing began cracking down on Chinese conglomerates’ rapid debt-fueled global expansions in 2017, HNA has sold more than $25 billion in assets, Dealogic data and Reuters calculations shows. Disposals have included big stakes in the Radisson hotel group, Hilton Hotels, property in New York, Sydney, Shanghai, San Francisco and Hong Kong, regional Chinese airlines and half of its stake in Deutsche Bank "



From China Daily, today:

https://www.chinadailyasia.com/article/156483The provincial government formed a joint working group last year in an effort to streamline the shareholding patterns of more than 2,000 enterprises under HNA Group to get a clear picture of the total assets and debts. Of the more than 2,000 companies, 90 percent of are shell companies, and only around 200 companies are in real business operations, said the executive.
The first batch of 62 companies is part of the 200 companies, taking up nearly 60 percent of the group’s total debts, the source said.
The second phase is expected to involve about 400 companies into bankruptcy and restructuring, which are estimated to take up 85 percent of debts of HNA, according to the source.


So, it seems as if they need to untangle the mess, and they propose to then restructure and reorganize the debt. Big moves, but it can be competently handled.

To relieve some immediate doubts though, and backing to aviation business;

https://www.chinadailyasia.com/article/156483 "The executive said the bankruptcy and restructuring will not affect HNA's aviation business, which comprises 14 companies and 700 commercial aircraft and is the country's fourth largest air carrier."


So, what does this mean regarding the financials around the airline? As many have pointed out, a reorganization of this scale has not occurred in the PRC, and echoing the statements above - this is the big.

According to news I have linked in previous reply, after investigation they discovered that despite the large amount of property, the debts in the group still far exceed the value of properties they have, and all current shareholders of the HNA groups will lost their stakes in the group, but report say there are some other companies in China that have already expressed their interest in investing into the post-restructured HNA.
It's pointless to attempt winning internet debate 求同存異 よく見て・よく聞いて・よく考える
Fitting foreign event into local context for lessons will only be able to tell local values instead of foreign ones
You're now at your youngest moment in your remaining life
 
User avatar
LAXintl
Topic Author
Posts: 25397
Joined: Wed May 24, 2000 12:12 pm

Re: HNA Group enters bankruptcy restructuring

Tue Feb 02, 2021 11:22 pm

Hainan Airlines says its operations are "stable and normal" and will spend this year negotiating to bring in strategic investors.

https://www.aerotime.aero/27143-Hainan- ... -investors
From the desert to the sea, to all of Southern California
 
User avatar
zeke
Posts: 16080
Joined: Thu Dec 14, 2006 1:42 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 12:12 am

LAXintl wrote:
Hainan Airlines says its operations are "stable and normal" and will spend this year negotiating to bring in strategic investors.

https://www.aerotime.aero/27143-Hainan- ... -investors


I read the article however I find the messages in it contradictory. It says the airline is a subsidiary of the HNA Group, and the group has filed for bankruptcy.

If I were a creditor of the HNA group I would be looking to recover the funds owed, the guaranteed operation of the airline would not be high on my concerns.
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949
 
MIflyer12
Posts: 9602
Joined: Mon Feb 18, 2013 11:58 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 2:07 am

If the subsidiary is part of the restructuring filing, isn't it protected, too?
 
davidjohnson6
Posts: 1441
Joined: Mon Jun 20, 2016 10:10 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 2:32 am

When the parent company of a group goes bankrupt, it often means that the subsidiaries inherit the problem as well. There may be cross-group guarantees, bank accounts may be frozen, necessary assets (e.g. aircraft) may be in the name of the parent company not the subsidiary, various licences needed to operate may be invalidated, there may be cross-company debts, covenants required by banks when money was lent in the past may become invalid upon a bankruptcy making debts repayable at very short notice, etc, etc

Assuming Beijing has not and does not make a decision to ensure the HNA group of airlines continue to operate.... there is significant risk to the various airlines which are majority owned by HNA.

Even for the airlines in which HNA has only a minor equity stake, this is still a very destabilising influence when airlines are already under great pressure from the pandemic
 
User avatar
lightsaber
Moderator
Posts: 22382
Joined: Wed Jan 19, 2005 10:55 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 2:40 am

davidjohnson6 wrote:
When the parent company of a group goes bankrupt, it often means that the subsidiaries inherit the problem as well. There may be cross-group guarantees, bank accounts may be frozen, necessary assets (e.g. aircraft) may be in the name of the parent company not the subsidiary, various licences needed to operate may be invalidated, there may be cross-company debts, covenants required by banks when money was lent in the past may become invalid upon a bankruptcy making debts repayable at very short notice, etc, etc

Assuming Beijing has not and does not make a decision to ensure the HNA group of airlines continue to operate.... there is significant risk to the various airlines which are majority owned by HNA.

Even for the airlines in which HNA has only a minor equity stake, this is still a very destabilising influence when airlines are already under great pressure from the pandemic

Good summary. It should be added the under companies are universally saddled with debt and the parent company long ago spent most of the cash.

I would argue the HNA group will be merged into other airlines with many aircraft parked.

Lightsaber
7 months without TV. The best decision of my life.
 
User avatar
zeke
Posts: 16080
Joined: Thu Dec 14, 2006 1:42 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 2:40 am

MIflyer12 wrote:
If the subsidiary is part of the restructuring filing, isn't it protected, too?


What do you mean by protected ?

In China there is no specific protection granted under bankruptcy proceedings, the only way the airline can make the claims it has is to obtain a court order for the continuation of the business.

There is no evidence to support the courts have granted this. From what you can see above it is difficult to determine what the organisational structure is and the debts. Without this information I don’t see how a court could grant such a motion.

“During the reorganisation process, a debtor can, on filing an application and obtaining approval of it from the court, manage its assets and business operations under the supervision of its bankruptcy administrator. Shareholders of the debtor will not be allowed to distribute profits and directors/supervisors/senior managers will not be able to transfer their equity shares. If the debtor manages its assets and business affairs, the debtor should prepare the reorganisation plan.”

The process that made the news last week was in relation to a creditor being successful with the bankruptcy application, there has been no news relating to HNA or the airline making an application to the court.

Quote from article “Restructuring and insolvency in China: overview”

https://uk.practicallaw.thomsonreuters. ... sc.Default)&firstPage=true
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949
 
kimshep
Posts: 85
Joined: Thu Jul 07, 2016 3:13 am

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 3:52 am

hawaiian717 wrote:
Rajahdhani wrote:
- Virgin Australia {as of 2016};

https://www.virginaustralia.com/au/en/about-us/media/2016/VA-Strategic-Alliance-HNA-Equity-investment/In support of the alliance, HNA will make an equity investment in the Virgin Australia Group. The investment will be made in the form of an A$159 million placement of shares at an issue price of A$0.30 per share, which represents a premium of 7.1 per cent to the last close on 30 May 2016. Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group.


With Virgin Australia’s administration last year, Bain now owns 100% of VA and HNA no longer has a stake.


Some further clarification:

Hainan was not the only 'loser' in Virgin Australia's Voluntary Liquidation process. Singapore Airlines, Etihad, Nanshan Corporation and Richard Branson additionally also had their share capital in Virgin Australia nullified by the Australian court process and none of the 5 received any recompense at all.

Whilst Bain & Co technically emerged as the successful bidder for Virgin Australia, it must be remembered that the Queensland State Government holds a AUD$ 200m stake in the new company which was to guarantee / ensure that BNE would remain the corporate headquarters.

It is also relevant that whilst Branson lost his 10% shareholding in the (pre) liquidated company, he subsequently approached Bain & Co with an investment in the new vehicle which equates to a 5% holding in the 'new' Bain-controlled Virgin Australia.
 
User avatar
zeke
Posts: 16080
Joined: Thu Dec 14, 2006 1:42 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 03, 2021 4:08 am

kimshep wrote:
Some further clarification:

Hainan was not the only 'loser' in Virgin Australia's Voluntary Liquidation process. Singapore Airlines, Etihad, Nanshan Corporation and Richard Branson additionally also had their share capital in Virgin Australia nullified by the Australian court process and none of the 5 received any recompense at all.
.


That is a very good point. What would be good to know is if that loss was immediately transferred to HNA books, or did it appear as a liquid asset.
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949
 
Breathe
Posts: 799
Joined: Sat Mar 18, 2017 8:06 pm

Re: HNA Group enters bankruptcy restructuring

Thu Feb 04, 2021 1:11 am

mercure1 wrote:
Breathe wrote:
Ground handling business Swissport is also part of HNA Group.


:shakehead:

HNA stake was divested last year to a group of investment management firms

I didn't realise that happened in December. Thanks for the correct info.
 
User avatar
c933103
Posts: 5537
Joined: Wed May 18, 2016 7:23 pm

Re: HNA Group enters bankruptcy restructuring

Mon Feb 08, 2021 3:56 am

MIflyer12 wrote:
If the subsidiary is part of the restructuring filing, isn't it protected, too?

Many of those subsidiary have already, or have been indicated that they will, individually file bankrupt.
It's pointless to attempt winning internet debate 求同存異 よく見て・よく聞いて・よく考える
Fitting foreign event into local context for lessons will only be able to tell local values instead of foreign ones
You're now at your youngest moment in your remaining life
 
User avatar
mercure1
Posts: 5186
Joined: Sun Jul 13, 2008 5:13 am

Re: HNA Group enters bankruptcy restructuring

Fri Feb 12, 2021 5:15 pm

Chinese High Court of Hainan Province has accepted the bankruptcy petition and placed HNA Group and many of its affiliates into administration.

Court has also appointed a team to oversee the group's affairs including in preparation for potential asset sales. The administered companies can continue normal operations, though the court appointees will have authority and discretion to halt business.

Observers believe a court-administered restructuring will be positive overall for HNA's businesses.

https://asia.nikkei.com/Business/Market ... nistration
mercure f-wtcc
 
sincx
Posts: 121
Joined: Fri Sep 16, 2016 5:01 pm

Re: HNA Group enters bankruptcy restructuring

Wed Feb 17, 2021 2:19 am

mercure1 wrote:
Observers believe a court-administered restructuring will be positive overall for HNA's businesses.


Well things certainly can't get too much worse. :duck:
 
User avatar
LAXintl
Topic Author
Posts: 25397
Joined: Wed May 24, 2000 12:12 pm

Re: HNA Group enters bankruptcy restructuring

Wed Mar 17, 2021 3:15 pm

HNA Group gained court approval to merge 321 entities in the conglomerate, paving way for the company to speed up the emergance from bankruptcy.
The company aims to pool corporate assets and liabilities as it pursues a restructuring plan

https://www.flightglobal.com/airlines/c ... 26.article
From the desert to the sea, to all of Southern California
 
sincx
Posts: 121
Joined: Fri Sep 16, 2016 5:01 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jun 04, 2021 5:10 pm

HNA Group faces US$187 billion in claims from 67,400 creditors, according to bankrupt conglomerate’s online meeting

HNA has confirmed 405.7 billion yuan in claims as valid and has rejected 353.5 billion yuan in claims
Another 156.5 billion yuan in claims are being assessed as part of a preliminary review while some claims have yet to be reviewed

https://www.scmp.com/business/companies ... -according

oof...
 
RoyalBrunei757
Posts: 321
Joined: Mon Apr 12, 2021 6:18 am

Re: HNA Group enters bankruptcy restructuring

Fri Jun 04, 2021 5:37 pm

Wow! USD187 billion! I don't think any financial institutions will extend credit to them anymore. Only Central Government will take over some debt and nationalise the airline perhaps. I guess we won't be seeing those A350 coming back or 787 will be sent back and more ntus.
 
User avatar
lightsaber
Moderator
Posts: 22382
Joined: Wed Jan 19, 2005 10:55 pm

Re: HNA Group enters bankruptcy restructuring

Fri Jun 04, 2021 6:11 pm

sincx wrote:
HNA Group faces US$187 billion in claims from 67,400 creditors, according to bankrupt conglomerate’s online meeting

HNA has confirmed 405.7 billion yuan in claims as valid and has rejected 353.5 billion yuan in claims
Another 156.5 billion yuan in claims are being assessed as part of a preliminary review while some claims have yet to be reviewed

https://www.scmp.com/business/companies ... -according

oof...

353.3 billion yuan rejected?!? Let's see 0.154 yuan to USD is $54.4 billion rejected. Oh my, this bankruptcy will tie up courts for a decade! Another $24.1 billion to be decided.
https://themoneyconverter.com/CNY/USD

Combined with coronavirus hurting aviation...

Lightsaber
7 months without TV. The best decision of my life.
 
RoyalBrunei757
Posts: 321
Joined: Mon Apr 12, 2021 6:18 am

Re: HNA Group enters bankruptcy restructuring

Mon Jun 07, 2021 2:44 pm

Hong Kong Airlines to axe 50% staff, focus on cargo-only operations

https://www.aerotime.aero/28094-hong-ko ... 6FxpjceBJk

Salient Points:
1. The airline is considering cutting its workforce by half in bid to survive the pandemic.
2. Will temporarily focus on cargo-only operations.
3. Grounded its entire fleet of A320, deployed eight A330 on cargo-only flight.
4. Since that start of pandemic they have returned 5 A330 and 4 A350 to its lessors.
5. At the start of 2020, before going through multiple redundancy exercises, the airline employed 3,481 people and operated 39 planes. As of December 2020, the airline's workforce stood at 2,300, down 34 per cent from its peak.

The city’s second largest air carrier Hong Kong Airlines is reportedly considering cutting its workforce by half in a bid to survive the ongoing pandemic. As part of a survival plan, the cash-strapped airline would temporarily focus on cargo-only operations.

The ailing Hong Kong Airlines would ground its entire fleet of Airbus A320 aircraft and deploy eight Airbus A330s with focus on only cargo operations, according to insider sources familiar with the matter, quoted by the South China Morning Post on June 7, 2021.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos