Embattled Chinese conglomerate HNA Group, which has been struggling to resolve a drawn-out cash crisis, announced Friday it faces bankruptcy, in one of the biggest corporate downfalls in the country's history.

The group, which owns one of China's biggest airlines -- Hainan Airlines -- and is China's largest private aviation conglomerate, said in a statement that its creditors had applied to a court for the group's bankruptcy and reorganisation as it could not pay off due debts.

Once an aggressive dealmaker, HNA previously held stakes in the Hilton hotel group and Deutsche Bank, and made investments spanning the aviation, tourism, real estate and financial services sectors as part of an acquisition binge.&nbsp;

In 2017, the Chinese government cracked down on HNA's aggressive global expansion, forcing it to slim down its assets to focus on its airline and tourism businesses.

Weighed down by billions of dollars of debt, the struggling conglomerate has since been trying to dispose of its assets.

- Reorganisation, not liquidation -

"There were rumours (of bankruptcy) as early as the end of last year, but it hasn't happened until now," David Yu, Adjunct Professor of Finance at New York University Shanghai, told AFP.

"It's deemed to be a reorganisation rather than a liquidation, which means this is the beginning of many proceedings to follow… courts are deeming HNA to be rehabilitable."

Established in 1993, the company grew from a small regional airline based on China's tropical Hainan island to a huge conglomerate, which at one point employed hundreds of thousands worldwide and had assets worth at least 1 trillion yuan ($154.8 billion).&nbsp;

But the group has now offloaded many of those, including US tech distributor Ingram Micro Inc, and luggage handler Swissport. &nbsp;

The group still has stakes in several Chinese and international airlines, an industry decimated by the pandemic -- for example, it owns Hong Kong Airlines, which laid off hundreds of staff last year amid a steep drop in tourism.

HNA is also subject to multiple lawsuits from investors and clients to whom it is indebted, including consultancy firm&nbsp;Deloitte.

- Government tightening grip -

Its painful restructuring was sped up after the Hainan government formed a working group to handle company risks last February -- which observers viewed effectively as a government takeover.

According to an official announcement last week, founder Chen Feng was ousted from the company's Communist Party committee -- a core executive group akin to its board of directors -- in a sign of the Party's tightening grip over the firm's operations.&nbsp;

HNA is not the only conglomerate to be caught in the crosshairs of China's financial regulators.&nbsp;

Real estate empire Wanda, insurance provider Anbang and investment giant Fosun have all faced similar crackdowns in recent years after making debt-fuelled acquisitions, with some forced to sell off overseas assets.&nbsp;

More recently, Beijing halted the record-breaking IPO of Alibaba's fintech arm, Ant Financial, as regulators cracked down on billionaire entrepreneur Jack Ma's tech empire.

Embattled Chinese conglomerate HNA Group, which has been struggling to resolve a drawn-out cash crisis, announced Friday it faces bankruptcy, in one of the biggest corporate downfalls in the country's history.

Embattled Chinese conglomerate HNA Group, which has been struggling to resolve a drawn-out cash crisis, announced Friday it faces bankruptcy, in one of the biggest corporate downfalls in the country's history. The group, which owns one of China's biggest airlines -- Hainan Airlines -- and is China's largest private aviation conglomerate, said in a statement that its creditors had applied to a court for the group's bankruptcy and reorganisation as it could not pay off due debts. Once an aggressive dealmaker, HNA previously held stakes in the Hilton hotel group and Deutsche Bank, and made investments spanning the aviation, tourism, real estate and financial services sectors as part of an acquisition binge. In 2017, the Chinese government cracked down on HNA's aggressive global expansion, forcing it to slim down its assets to focus on its airline and tourism businesses. Weighed down by billions of dollars of debt, the struggling conglomerate has since been trying to dispose of its assets. - Reorganisation, not liquidation - "There were rumours (of bankruptcy) as early as the end of last year, but it hasn't happened until now," David Yu, Adjunct Professor of Finance at New York University Shanghai, told AFP. "It's deemed to be a reorganisation rather than a liquidation, which means this is the beginning of many proceedings to follow… courts are deeming HNA to be rehabilitable." Established in 1993, the company grew from a small regional airline based on China's tropical Hainan island to a huge conglomerate, which at one point employed hundreds of thousands worldwide and had assets worth at least 1 trillion yuan ($154.8 billion). But the group has now offloaded many of those, including US tech distributor Ingram Micro Inc, and luggage handler Swissport. The group still has stakes in several Chinese and international airlines, an industry decimated by the pandemic -- for example, it owns Hong Kong Airlines, which laid off hundreds of staff last year amid a steep drop in tourism. HNA is also subject to multiple lawsuits from investors and clients to whom it is indebted, including consultancy firm Deloitte. - Government tightening grip - Its painful restructuring was sped up after the Hainan government formed a working group to handle company risks last February -- which observers viewed effectively as a government takeover. According to an official announcement last week, founder Chen Feng was ousted from the company's Communist Party committee -- a core executive group akin to its board of directors -- in a sign of the Party's tightening grip over the firm's operations. HNA is not the only conglomerate to be caught in the crosshairs of China's financial regulators. Real estate empire Wanda, insurance provider Anbang and investment giant Fosun have all faced similar crackdowns in recent years after making debt-fuelled acquisitions, with some forced to sell off overseas assets. More recently, Beijing halted the record-breaking IPO of Alibaba's fintech arm, Ant Financial, as regulators cracked down on billionaire entrepreneur Jack Ma's tech empire.

Chinese conglomerate HNA Group faces bankruptcy, restructuring

Cash-strapped carrier <a href="https://www.wionews.com/business-economy/hong-kong-airlines-told-to-improve-finances-or-risk-losing-licence-265751">Hong Kong Airlines</a> has had seven idle planes impounded at the city's airport after it failed to make payments, authorities said Tuesday, with the firm hit by a plunge in tourist numbers caused by long-running protests.

The Airport Authority announced the seized planes under an ordinance that addresses overdue charges.

"The Airport Authority understands that the detained aircraft have not been operated for passenger service in recent months," a spokesman said.

The rule allows the city's air regulators to impound planes for non-payment of charges and that aircraft can be sold after 60 days if the account is not settled.

Hong Kong Airlines, which has a fleet of 39 planes, said the impounded aircraft were not currently operating passenger routes.

"Our operation remains normal," the carrier said in a statement.

The seizures will deepen concerns over the health of Hong Kong Airlines. The firm is owned by the struggling Chinese conglomerate HNA Group, which has been looking to lower its debt burden.

The airline has been hammered by a sharp drop-off in tourists to Hong Kong as the city convulses from six months of violent pro-democracy protests.

Earlier this month, regulators threatened to suspend its licence unless it found new cash revenues after the company announced it was delaying some salary payments to staff.

The carrier found a last-minute injection of funds, earning a reprieve.

Visitor arrivals have tanked during the protests with passengers from the Chinese mainland plummeting, hammering retail sales and helping tip the city into recession.

Hong Kong airline <a href="https://www.wionews.com/business-economy/cathay-pacific-shares-in-choppy-trade-after-shock-exit-of-ceo-rupert-hogg-243986">Cathay Pacific</a> on Tuesday announced it carried just under 2,624,000 passengers last month a drop of nine percent in November last year.

Cathay Pacific was criticised by Chinese state media and authorities earlier this year because some of its 27,000 employees took part in or were sympathetic to anti-government demonstrations in Hong Kong.

Cash-strapped carrier Hong Kong Airlines has had seven idle planes impounded at the city's airport after it failed to make payments, authorities said Tuesday, with the firm hit by a plunge in tourist numbers caused by long-running protests.

Cash-strapped carrier Hong Kong Airlines has had seven idle planes impounded at the city's airport after it failed to make payments, authorities said Tuesday, with the firm hit by a plunge in tourist numbers caused by long-running protests. The Airport Authority announced the seized planes under an ordinance that addresses overdue charges. "The Airport Authority understands that the detained aircraft have not been operated for passenger service in recent months," a spokesman said. The rule allows the city's air regulators to impound planes for non-payment of charges and that aircraft can be sold after 60 days if the account is not settled. Hong Kong Airlines, which has a fleet of 39 planes, said the impounded aircraft were not currently operating passenger routes. "Our operation remains normal," the carrier said in a statement. The seizures will deepen concerns over the health of Hong Kong Airlines. The firm is owned by the struggling Chinese conglomerate HNA Group, which has been looking to lower its debt burden. The airline has been hammered by a sharp drop-off in tourists to Hong Kong as the city convulses from six months of violent pro-democracy protests. Earlier this month, regulators threatened to suspend its licence unless it found new cash revenues after the company announced it was delaying some salary payments to staff. The carrier found a last-minute injection of funds, earning a reprieve. Visitor arrivals have tanked during the protests with passengers from the Chinese mainland plummeting, hammering retail sales and helping tip the city into recession. Hong Kong airline Cathay Pacific on Tuesday announced it carried just under 2,624,000 passengers last month a drop of nine percent in November last year. Cathay Pacific was criticised by Chinese state media and authorities earlier this year because some of its 27,000 employees took part in or were sympathetic to anti-government demonstrations in Hong Kong.

Seven Hong Kong Airlines planes impounded by authority over failed payments

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Chinese conglomerate HNA Group faces bankruptcy, restructuring

Seven Hong Kong Airlines planes impounded by authority over failed payments