Troubled Chinese airline group proposes paying 40% of debts

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HNA Group, a Chinese airline operator that was in financial trouble following a global takeover spree, has proposed a plan to settle $61 billion in debt from thousands of creditors by paying 40% of the total.

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BEIJING — HNA Group, a Chinese airline operator that plunged into financial trouble following a global takeover spree, has proposed a plan to settle $61 billion in outstanding debt from thousands of creditors by paying 40% of the total.

The group warned in a statement on Tuesday that it faces potential liquidation due to “mismanagement and investment disorder.” HNA Group said on Friday that its chairman and CEO have been detained by police on suspicion of unspecified crimes.

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An administrator has asked the court to confirm that the company is 161.2 billion yuan ($25 billion), or 397.2 billion yuan ($25 billion), said a repayment plan released Tuesday by a subsidiary of HNA’s publicly traded Hainan Airlines Holding Company. obliged to pay about 40% of the billion yuan. $61 billion) claimed by 4,915 creditors.

The plan stated that creditors would receive shares in Hainan Airlines and no more than 100,000 yuan ($15,500) in cash to settle a third of the debt. It said that the HNA group and related companies would be responsible for two-thirds of the remaining debt.

HNA Group said on Friday that its chairman Chen Feng and CEO Tan Jiangdong were taken “under mandatory measures” by police because of a “suspicion of a crime”. It gave no details but said operations were “not affected.”

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