HNA Group, a Chinese airline operator that ran into financial trouble after a global acquisition spree, has proposed a plan to settle $61 billion in debts owed to thousands of creditors by paying 40% of the total.
The conglomerate warned in a statement Tuesday that it faces possible liquidation due to “mismanagement and investment disorder.” HNA Group said Friday its chairman and CEO were detained by police on suspicion of unspecified crimes.
HNA Group, which operates Hainan Airlines and other carriers, bought hotels, a stake in Deutschebank AG and other assets abroad starting in 2014, financed by bank loans and bond sales. The company was struggling to pay its debts when last year’s global travel shutdown to fight the coronavirus devastated its aviation business. The government of the southern province of Hainan took control in February 2020.
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