HNA execs arrested
HNA Group Chairman Chen Feng and Chief Executive Officer Adam Tan have both been detained by police in Hainan.
The parent company of Hainan Airlines said its operations are not affected and its restructuring work is continuing, having been under a court-led bankruptcy and reorganisation process since Jan.
The two men have been arrested on “suspected crimes”, with no further details revealed at this stage, however the news follows a broader crackdown by the Chinese Govt on the financial dealings of the private sector.
HNA aggressively scooped up assets around the world from 2015 to 2017, buying stakes in Hilton Hotels & Resorts, Deutsche Bank and more, resulting in more than US$40b worth of deals.
The shopping spree saddled the company with debt, resulting in HNA reversing course and selling many of its overseas assets, with COVID also battering its profits.