China’s HNA Group secured strategic investors for its airline and airport businesses, a key step in the once high-flying conglomerate’s state-run reorganization and bid to move beyond its debt woes.
The administrators of HNA’s debt restructuring program have decided to bring in Liaoning Fangda Group Industrial Co. as the strategic investor for the airline business and Hainan Development Co. for the airport unit, according to exchange filings Sunday.
The restructuring aims to help Hainan Airlines Holding Co. and HNA Infrastructure Investment Group Co. reduce debt and improve profitability, the two companies said in their filings. There is still a risk of bankruptcy or delisting if their financial results don’t meet regulatory requirements, they said, without elaborating.
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