The Chinese conglomerate HNA, specializing in air transport and tourism, announced Friday that it was in bankruptcy proceedings, after being severely affected by the coronavirus epidemic.
Read also: America tightens Chinese companies' access to Wall Street
Parent airline of Hainan Airlines, HNA is one of China's largest private groups.
He once claimed 400,000 jobs.
Riddled with debt, the group said in a short statement that its creditors had requested its bankruptcy and restructuring.
“
The group could not repay its debts,
” the statement said.
HNA has grown rapidly through all-out acquisitions to the point of becoming a gigantic, diverse conglomerate.
In the past, the group had distinguished itself through massive and prestigious investments abroad, taking stakes in particular in Deutsche Bank and Hilton hotels.
But Beijing forced it to divest itself of much of these assets in order to reduce its debt.
Like its compatriots Wanda (real estate, cinema, amusement parks), Fosun (tourism, entertainment) and Anbang (insurance, hotels), HNA has been in the crosshairs of Chinese regulators for several years, concerned about the scale loans that these conglomerates have contracted to finance their acquisitions.
Read also: Aigle Azur in turmoil after a putsch
Despite asset disposals, HNA's total indebtedness is valued at more than 75 billion yuan (9.6 billion euros), according to the financial information agency Bloomberg.