HNA insolvency burdens Hahn Airport

After years of aggressive expansion, the southern Chinese travel conglomerate and major investor HNA has filed for insolvency. HNA announced on WeChat that a court in Hainan had ordered a restructuring. The group is no longer able to service its debts. The exact amount of liabilities is yet to be determined. The most recent available information is from 2019, when the company reported its debt at ¥707 billion (€90 billion). During the course of the coronavirus crisis, this already high amount is likely to have significantly increased. In 2019, several state-owned banks, including the Bank of China, Agricultural Bank and ICBC, joined forces to provide a major support credit. Now, the patience of the government and its financial actors has reached its limit. The surviving subsidiary companies are expected to become independent in the near future.