HNA Chairman, CEO Detained as Restructuring Enters Home Stretch

China’s HNA Group, which declared bankruptcy earlier this year after struggling to pay off debts that once totalled over $100 billion, has added a new chapter to its restructuring as two of its top officials have been taken away by police, mingtiandi.com reported. Chairman Chen Feng, who founded Hainan Airlines in 1989 and grew it into the sprawling conglomerate known as HNA, was detained for suspected crimes, along with chief executive Adam Tan, HNA said in a statement to its official WeChat account late Friday. The detention of Chen and Tan came one week after HNA, which has been controlled by Hainan government officials since early 2020, had announced a reorganisation plan that would split HNA into four new business units, and wiped out the company’s existing shareholders, including the now-former management team. The potential criminal prosecution of Chen and Tan could foretell the eventual fate of Evergrande boss Xu Jiayin and his team as that group attempts to restructure $300 billion in debt. At the same time that HNA announced the detention of Chen and Feng, the company called an in-person and remote meeting of “more than 2,700 party members, cadres and staff representatives” that was presided over by Gu Gang, a Hainan government official who was appointed executive chairman of HNA in March last year and leads a working committee responsible for restructuring. Read more.

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