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Chinese police have arrested two remaining HNA founders shortly after the collapse of China’s most popular group.
China’s state-run finance ministry says Chen Feng’s chairman and Adam Tan’s chief was arrested on Friday on a charge of suspicion, without providing details of the crimes.
This arrests are also beginning to manifest themselves as one of China’s biggest industry challenges. The move by Chinese officials comes three years after the incident Wang Jian dies in Bonnieux, southern France, which French police said was an accident.
The three leaders earned about $ 90bn in loans that boosted the group’s net worth of about $ 40bn in just two years in mid-2010s.
What started as an airport became a hotel-based travel company at the Hilton hotel, Dutch TIP Trailer Services and Irish airline Avolon. It boasted of the highest value at Deutsche Bank, stone sites such as 245 Park Avenue in New York and Ingram Micro in the US.
But his findings were accepted – borrowing from Chinese property – raising concerns about his return, if the party suddenly could not repay, or repay its debts.
Chinese debtors at the end of January set up bankruptcy and a few days later, HNA-funded organizations said billions of dollars in cash had been misused.
Prior to its arrest on Friday, pilots who had previously been high-speed runners had left the team several years ago. Chen was banned from taking planes and high-speed railways. Tan’s name was last released in the company in September 2018.
Government banks and regulators have set up camp at the company’s offices in Hainan, an island off the southeast coast of China for years, in an effort to clean up the mess.
The group’s chairman, Gu Gang, said on September 18 that negotiations on debt restitution had “entered the final phase”. The restructuring plan could shift the growing number of corporations into four groups, with new shareholders overseeing aviation, airport, economic and commercial operations.
“Experience has shown that diversity is not going well,” said Gu, who heads a $ 77bn HNA debt relief committee.
Even before Wang’s mysterious death, the group faced many challenges from Chinese, as well as foreign officials, due to corporate governance and its ownership and debt.
The group is one of China’s “gray guns” – so-called because it threatens but does nothing. He has been compared to Evergrande, a Chinese arms manufacturer whose economic crisis has disrupted international markets in recent weeks.
Experts say the HNA experience could serve as a clear warning on the future path of cooperation between Chinese Communist Party leaders and businessmen and business leaders on which the country depends on economic growth.
Gu said on September 18 that the reform movement should “promote the good HNA culture and abandon the bad culture”.
Extras quoted by Sherry Fei Ju in Beijing