BEIJING, China – China’s HNA Group Company Ltd said it has transferred management of its core aviation business, including Hainan Airlines Holding Company Ltd, to strategic investor Liaoning Fangda Group Industrial Company Ltd, effective Wednesday, December 8.
Gu Gang, an official appointed by the local government to resolve years-long debt risk at HNA, will no longer serve as the conglomerate’s Communist Party secretary as the reorganization had made progress, HNA said in a statement on social media.
In the 2010s, HNA went on a $50-billion global acquisition spree, mainly fueled by debt, to build an empire with stakes in businesses as varied as Deutsche Bank AG to Hilton Worldwide Holdings.
But its spending drew scrutiny from regulators at home and abroad. As concern grew over its mounting debt, it sold assets such as airport services provider Swissport and electronics distributor Ingram Micro to focus on airlines and tourism.
Fangda Group is a conglomerate involved in the carbon, steel, and pharmaceutical sectors, with listed units such as Fangda Carbon New Material Company Ltd, Fangda Special Steel Technology Company Ltd, and Northeastern Pharmaceutical Group Company Ltd. – Rappler.com