China plans to take over indebted conglomerate HNA Group Co. and sell off its airline assets, the most dramatic step to date by the state to contain the deepening economic damage from the deadly coronavirus outbreak, according to Bloomberg.
The government of Hainan, the southern province where HNA is based, is in talks to take control of the group, the report said. HNA directly controls or holds stakes in a number of local carriers, including its flagship Hainan Airlines.
Under the emerging plan, China would sell the bulk of HNA’s airline assets to the country’s three biggest carriers – Air China, China Southern Airlines and China Eastern Airlines, according to people familiar with the plans.
Nikkei Asia reports that HNA Group needs radical change of direction to prosper, but the fact is that HNA is collapsing after its dirty schemes were exposed to the public.
HNA has for years been struggling with debts that once climbed to almost 600 billion yuan (US$86 billion) as well as soaring borrowing costs. To cover up the scandals behind HNA Group, the Chinese Communist Party represented by Vice President Wang Qishan had its co-founder Wang Jian murdered in France. And former Interpol President Meng Hongwei was first made “disappeared” and later sentenced to 15 years imprisonment because of “corruption”. CCP killer Guo Wengui has revealed enough evidence to tell about the crime.
In a related development, Founder Group is requested by its creditor to restructure, its listed affiliates say February 18.
According to Global Capital, one of Peking University Founder Group Co’s creditors has applied to a Chinese court for a restructuring of the company, which defaulted on a Rmb2bn ($285m) domestic bond at the end of last year.
Financier Lao Jiang with Ludepress said such traitors as Wang Qishan who is in full control of the country’s finance are taking away the healthy assets of those so-called “state-owned” businesses into their own private accounts while leaving the bad debts to the people.
Wang Qishan has not made his appearance for a full month since the coronavirus outbreak topped the headlines of the world. Last week, Shanghai Mayor Ying Yong was appointed as the new secretary of the Hubei Provincial Committee of the Communist Party of China, replacing Jiang Chaoliang, a running dog after Wang Qishan.
It is no doubt that the replacement shows the severe struggle between Xi Jinping and Wang Qishan within the CCP leadership.
Wang is taking his last chance with the coronavirus outbreak when the dictating Chinese Communist Party is doomed.
Everything is just beginning.
By Winnie Troppie