BEIJING, Dec 8 (Reuters) - China's HNA Group Co Ltd
said it has transferred management of its core
aviation business, including Hainan Airlines Holding Co Ltd
, to strategic investor Liaoning Fangda Group
Industrial Co Ltd, effective Wednesday.
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 reorganisation
had made progress, HNA said in a statement on social media.
In the 2010s, HNA went on a $50 billion global acquisition
spree, mainly fuelled by debt, to build an empire with stakes in
businesses as varied as Deutsche Bank AG to Hilton
Worldwide Holdings Inc.
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.
After creditors filed a petition, a Hainan court placed HNA
into bankruptcy administration, and in September, Hainan
Airlines said Fangda Group would become a strategic investor.
Fangda Group is a conglomerate involved in carbon, steel and
pharmaceutical sectors, with listed units such as Fangda Carbon
New Material Co Ltd, Fangda Special Steel Technology
Co Ltd and Northeastern Pharmaceutical Group Co Ltd
(Reporting by Stella Qiu and Brenda Goh; Editing by Jacqueline
Wong and Christopher Cushing)