[Epoch Times August 07, 2021](Epoch Times reporter Liu Yi comprehensive report) On the evening of August 6, the three listed companies of HNA Holdings, HNA Foundation, and Supply and Marketing Daji under HNA Group announced the postponement of submitting reorganization plans. , Extending the deadline for submitting the draft reorganization plan for three months to November 10.
The three companies successively issued announcements on the 6th that the company received the “Civil Ruling” from the Hainan Provincial Higher Court on August 6, 2021, and ruled that the deadline for submitting the draft reorganization plan for the company and its subsidiaries was extended to November 10, 2021. day.
Regarding the reasons for applying for postponement of reorganization, the three companies all stated that since the basic work related to the formulation of the reorganization plan is still in progress, and the relevant content of the draft reorganization plan has not yet been finalized, each company applies to the Hainan Higher People’s Court for the reorganization plan. The deadline for submission of the draft is extended by three months. In the future, the draft reorganization plan will continue to be prepared based on the property investigation, liability review and the introduction of strategic investment, and communication with relevant parties will be initiated in due course.
On January 29 this year, HNA Group announced that it had filed for bankruptcy and reorganization; on February 10, the Hainan Provincial High Court ruled that HNA Group and its three listed companies (HNA Holdings, HNA Foundation, and Supply and Marketing) were bankrupt and reorganized; March 13, The Hainan Provincial Higher People’s Court ruled that 321 HNA Group companies should be merged and reorganized, and HNA Group was appointed as the administrator.
After the bankruptcy reorganization process was officially launched, the three companies of HNA Holdings, HNA Foundation, and Supply and Marketing Daji held their first creditors’ meeting in April. The main agenda of this meeting was routine matters. Thousands of creditors declared that the declared amount reached nearly 350 billion yuan.
On June 4, HNA Group held its first creditors meeting. It was disclosed at the meeting that a total of more than 60,000 creditors have received claims from creditors, and the amount involved in the claims exceeds RMB 1,200 billion, but no specific reorganization plan has been submitted.
According to a news from the mainland Caixin website on August 7, a person close to the Hainan HNA Group Joint Working Group stated that the working group originally hoped to complete the submission of the reorganization plan and submit it to the creditors’ meeting for consideration by the end of June, with a view to officially launching debt before the end of 2021. Risk mitigation work. But at present, due to the many and complex issues involved, this plan has been delayed.
According to the “Enterprise Bankruptcy Law”, the period of bankruptcy reorganization is six months. If there are legitimate reasons, the court may rule to extend the period for three months. If within the time limit, the debtor or administrator’s bankruptcy reorganization plan is not approved by creditors’ vote, the reorganization process will be terminated, and the court will declare the debtor bankrupt and enter bankruptcy liquidation.
Another hurdle for HNA Group’s reorganization is the risk reduction of its many P2P platforms. HNA’s wealth management products claim over RMB 30 billion, involving approximately 60,000 people, of which approximately 23,000 are internal HNA employees.
Can the above-mentioned personal financial management debts be paid in full? When will it be paid? According to a report by China Business News on August 6, spokespersons including the bankruptcy reorganization manager and the working group said: “Under the current situation of severe insolvency of HNA, the theoretical repayment rate of financial products is relatively limited. Due to limited debt repayment resources, it is difficult to meet the high expectations of creditors to be fully repaid in full.”
Regarding whether the wealth management products purchased by HNA employees can be listed as employees’ claims that can be repaid with priority, Huang Yulong, a lawyer from Zhejiang Handing Law Firm, said that the provisions on employee claims in the Bankruptcy Law are relatively clear and are owed to employees by bankrupt companies. Wages, medical disability subsidies, pension expenses, basic old-age insurance basic medical insurance expenses that should be credited to the employee’s personal account, and compensation that should be paid to employees as stipulated by laws and administrative regulations, other than that are not employee claims.
According to the 2020 annual report released by the 13 listed companies under the HNA Group on April 30 this year, the 13 companies had a total loss of RMB 94.773 billion.
China Times Online reported on January 23 that HNA had a debt of 700 billion RMB, and “the debt is huge and no one dares to take over.”
According to the seventh issue of Caixin Weekly this year, according to HNA’s bankruptcy and reorganization approach, after the bankruptcy and reorganization, old shareholders such as Cihang Foundation and Chen Feng will all be eliminated. HNA Group is held by creditors and its subsidiary The entire enterprise tries to introduce strategic investors as much as possible. Whether HNA will remain a giant ship or be dismembered into countless small boats in the future is unknown.
The outside world has always questioned that HNA Group is the white glove of the CCP’s rich and powerful. HNA relied on the CCP’s patrons behind it to borrow heavily from mainland financial institutions and use the model of domestic guarantees and foreign loans to expand. While its rapid expansion, it has accumulated huge debts. After the CCP cancelled loans from banks by four private companies, including HNA, in mid-2016, problems occurred in the capital chains of these companies. In order to repay the debt, HNA had to switch from the previous buying-buying model to the selling-selling model, but HNA’s capital chain was still overwhelmed and broken, and was sued by creditors and embarked on the road of bankruptcy and reorganization.
Editor in charge: Li Qiong#