China’s HNA Group chairman and CEO taken away by police

Stock Markets4 minutes ago (Sep 24, 2021 08:47AM ET)

2/2
(C) Reuters. FILE PHOTO: The HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo

2/2

SHANGHAI (Reuters) -China’s HNA Group, once one of the country’s most acquisitive conglomerates, said on Friday that its chairman and its chief executive had been taken away by police due to suspected criminal offences.

The company, which was placed in bankruptcy administration in February after its creditors filed a petition, said in a statement on its official WeChat account it had been notified by police in its home province of Hainan, southern China, that Chairman Chen Feng and CEO Tan Xiangdong had been taken.

“The operations of HNA Group and its member companies are stable and orderly, and the bankruptcy and restructuring work is progressing smoothly according to the law,” the company said.

In the 2010s HNA Group, whose flagship business is carrier Hainan Airlines, used a $50 billion global acquisition spree, mainly fuelled by debt, to build an empire with stakes in businesses from Deutsche Bank (DE:DBKGn) 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 business.

In early 2020, after the COVID-19 pandemic paralysed travel demand and hit cash flows, the Hainan government sent in a work group to HNA to help resolve its liquidity problems.

China’s HNA Group chairman and CEO taken away by police

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Join the exclusive subscription today and get premium articles for free

Up Next