Troubled HNA Group said last week that it is looking for investors for its airline and related entities as part of its restructuring. The group, known for its flagship unit Hainan Airlines, received court approval to merge 321 related companies into a single company in a bid to simplify its business and offer the most value to all stakeholders. HNA has laid out conditions for the prospective investor that include characteristics such as “good financial health” and “excellent corporate governance”. The group added,“[Investors must also] ensure that Hainan Airlines’ main business is not divided…and operating under one network management and control operations.” The March 15 ruling by the Hainan High People’s Court to merge the 321 entities is to ensure “fair compensation” to all creditors and speed up the overall restructuring process.

This comes after a massive embezzlement of $10bn came to light early last month the prompted creditors to seek restructuring.

HNA Group’s 6.25% bonds due in October this year are currently trading at 56 cents on the dollar.

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