Chinese Hainan Airlines to sell assets of external debts but still pillar of Hai
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Hundreds of workers are pouring concrete under the rotating tower crane at a construction site in Haikou, a tropical city in China. There will be a huge skyscraper standing beside the palm lined street.
In January 11, 2018, Haikou, China, the central business district in the building of the office. REUTERS/Matthew Miller
The building is the first in Petronas Twin Towers as the gateway to the new 200 hectare central business district in Haikou. Haikou is the capital of Hainan province in the southern province of China.
The project is built by sea air group. HNA Group started 25 years ago on two planes and started as a local airline in Hainan, and later developed into a comprehensive service company that includes aviation, finance and other businesses. The company has a high level of leverage and has been widely noticed and examined by the outside world.
But this is now ready to sell Hainan Airlines 100 billion yuan ($15 billion 840 million) at least part of the rights and interests of the huge business district project. Sea air has disposed of a lot of interest accumulated in the $50 billion global acquisition carnival.
According to the sources familiar with the situation, HNA is now consulting on some parts of the development project and potential strategic partners, including a series of investors' interests, and HNA is ready to re organize its operation and reduce the number of employees.
HNA's search for investors in its base camp highlights the dilemma facing the company, which is struggling to cope with the huge debt accumulated during the rapid expansion period.
HAC said to the major creditor bank in January that the potential cash gap in the first quarter was at least 15 billion yuan.
Over the past two months, Hainan Airlines has already sold over 6 billion US dollars in gold lots of real estate in Australia, New York and Hongkong. At the same time, we also sell shares of Deutsche Bank (DBKGn.DE), Park Hotels & Resorts (PK.N) and Hilton Grand Vacations Inc (HGV.N) and other companies.
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