Troubled Chinese airline group proposes paying 40% of debts

HNA Group, a Chinese language airline operator that bumped into monetary hassle after a world acquisition spree, has proposed a plan to settle $61 billion in money owed owed to 1000’s of collectors by paying 40% of the full

BEIJING — HNA Group, a Chinese language airline operator that bumped into monetary hassle after a world acquisition spree, has proposed a plan to settle $61 billion in money owed owed to 1000’s of collectors by paying 40% of the full.

The conglomerate warned in an announcement Tuesday that it faces doable liquidation attributable to “mismanagement and investment disorder.” HNA Group stated Friday its chairman and CEO had been detained by police on suspicion of unspecified crimes.

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The reimbursement plan, launched Tuesday by HNA’s publicly traded Hainan Airways Holding Co. subsidiary, stated an administrator has requested a court docket to verify the corporate is obligated to pay 161.2 billion yuan ($25 billion), or about 40% of the 397.2 billion yuan ($61 billion) claimed by 4,915 collectors.

Collectors would obtain shares in Hainan Airways and not more than 100,000 yuan ($15,500) in money to settle one-third of the debt, the plan stated. It stated HNA Group and associated corporations can be answerable for two-thirds of the remaining debt.

HNA Group stated Friday its chairman, Chen Feng, and CEO, Tan Xiangdong, had been “taken under compulsory measures” by police attributable to “suspicion of crime.” It gave no particulars however stated operations “are not affected.”

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