HNA Group, one of the largest conglomerates in China, announced on Friday that some of its creditors have filed applications with the People’s High Court in Hainan calling for the company’s bankruptcy and restructuring.
HNA has been dealing with a huge debt crisis with total liabilities amounting to RMB700bn ($107bn). The group sought help from the local government last year and the Hainan government set up a working group to help solve the group’s debt issues.
The group said it will cooperate with the court to carry out a judicial review and potential debt disposal, and ensure the smooth operations of the company during the period.
HNA’s flagship business is Hainan Airlines, the largest private airline in China. The group also ventured into multiple other sectors including shipping, technology, tourism, real estate and finance.
HNA’s previous shipping foray was led by defunct subsidiary Grand China Logistics, one of China’s most high profile boom and bust shipping cases.
HNA Technology, formerly Tianhai Investment, and before that known as Tianjin Marine, re-entered the shipowning sector with the acquisition of two 2012-built 176,000 dwt capesize bulkers in December.
Besides shipping, HNA Group also controls the Jinhai Shipyard, which currently has a orderbook of nine vessels including five containerships and four VLCC tankers according to VesselsValue data.