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HNA Group
BusinessCompanies

HNA’s woes mount as three listed units disclose embezzlements of nearly US$10 billion by shareholders

  • Misappropriation of funds took place at Hainan Airlines Holding, HNA Infrastructure Investment Group and CCOOP Group
  • Companies have not disclosed the identities of the shareholders

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HNA had 706.7 billion yuan (US$110 billion) in debt at the end of June 2019. Photo: Reuters
Reuters
Three units of HNA, once China’s most acquisitive conglomerate, said nearly US$10 billion had been embezzled by shareholders, in disclosures to stock exchanges that come amid a government-led investigation into the deeply indebted group.
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A total of 61.5 billion yuan (US$9.6 billion) had been embezzled by shareholders and other related parties, Shanghai-listed Hainan Airlines Holding, HNA Infrastructure Investment Group and Shenzhen-listed CCOOP Group said late on Friday.

The identities of the shareholders were not disclosed in the statements.

The three companies and their subsidiaries had also provided non-compliant guarantees for 46.5 billion yuan in financing, according to the statements filed after creditors of their parent applied to a court for the conglomerate to be placed in bankruptcy and restructured.

HNA sold airport services company Swissport as concerns grew over its mounting debts. Photo: Handout
HNA sold airport services company Swissport as concerns grew over its mounting debts. Photo: Handout
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The move came after a local government-led working team concluded due diligence at HNA earlier in January, and laid out risk disposal plans, enabling it to move to the next stage of resolving a multi-year liquidity crisis.

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