Analysis of the reasons why HNA was cleaned up

1. HNA, bankruptcy reorganization 2. Reasons for HNA's bankruptcy 3. HNA Group went bankrupt. Why did the former giants fall into this situation? 4. Behind the history of HNA Group's M&A is the desire to expand, which is the capital's self-humiliation. HNA Group went bankrupt and reorganized < P > Author: bean curd < P > HNA Group declared bankruptcy and reorganized because it could not pay off its due debts, and the relevant creditors applied to the court for bankruptcy and reorganization of HNA Group.

Bankruptcy and reorganization show that HNA Group still has high-quality assets, so it will not directly go bankrupt and liquidate, but adjust its debts to ensure the orderly operation of the enterprise, and some of the defaulted debts may be recovered in the future.

In any case, the level of Hainan Airlines' civil aviation industry is still good. Although it is greatly affected by the epidemic, as long as the epidemic is over, the civil aviation industry can recover and become a golden hen again.

But HNA's debt problem has been going on for a long time.

six years ago, HNA acquired a large number of overseas assets with high leverage. At that time, there was a large outflow of foreign exchange. When the outflow of foreign exchange was strictly controlled, HNA's game of highly leveraged acquisition of overseas assets could not be played.

HNA can only sell its overseas assets at a reduced price to cash out.

Wanda had a similar experience, but it kept a lot of low profile, and it was very decisive in handling assets and survived the crisis.

in p>217, a liquidity crisis broke out in HNA, and since then, news of HNA's default has frequently appeared.

HNA invested heavily and borrowed a lot of money. For example, Hu Huaibang, the former Party secretary of CDB, who was just sentenced to life imprisonment this year, once instructed HNA to lend a large sum of money during his tenure. By the end of 218, HNA had a debt of 75 billion yuan, of which more than 8 billion yuan was obtained from CDB. Hu Huaibang's tenure has caused a lot of bad assets to CDB.

HNA is mired in debt, trying to save itself, although the posture is not good. Last year, we wrote "Borrowing money is to be repaid". At that time, HNA hastily convened a meeting on "13 HNA Debt", ignoring the opinions of small and medium-sized investors. With three investors in favor and 29 investors against it, the resolution to postpone the principal and interest of "13 HNA Debt" for one year was successfully passed because three approvers accounted for 98.26% of the voting rights attending the meeting.

This really ignores the interests of small and medium investors.

You know, at that time, Baotou Rural Commercial Bank held the largest stock of "13 HNA bonds" in the Shanghai Stock Exchange market, with a holding scale of 15 million yuan, accounting for 8%.

This means that the bonds of many heavily indebted enterprises like HNA, which are on the verge of default or even have defaulted, are the underlying assets of many small and medium-sized banks or other financial institutions. These enterprises have risks, and the risks may be transmitted to many wealth management products, which will eventually affect people who don't understand them.

do you know the intention of asking the internet platform to remove internet deposits some time ago?

Last year, there were some bad corporate defaults. The default of Yongmei and Brilliance challenged investors' trust in state-owned enterprises and local governments behind them.

There is a regional rumor that this is "investment can't surpass the territory of the Southern Song Dynasty", which is not true, because there are many such debt problems in the whole country, and many southern enterprises also have great problems. HNA is a real hammer, and readers who care about finance and economics can certainly cite many similar examples.

there are still many enterprises that have made rapid progress through superb financial skills. After a certain time node, you can turn over as if nothing happened, but it will be exposed if you don't survive.

HNA's bankruptcy reorganization shows that its core assets are still good, the interests of creditors can be recovered, and the jobs of ordinary employees of HNA can probably be saved. In 219, HNA delayed the payment of employees' wages. Similarly, Yongmei also has unpaid wages. When faced with financial problems, such a company with great influence in the local area has become a problem that must be considered.

Many debts may be cleared this year, and the task of smoothly clearing debts and ensuring employment is severe.

We can only hope that the bankruptcy and reorganization of HNA will go smoothly, the epidemic will pass as soon as possible, and the civil aviation industry will prosper again.

The risk of acquiring assets with high leverage is very high, and the economic growth will slow down in the future. I am afraid that the era of "Tsinghua Peking University is not as bold as it is" has passed. Remember those words:

"Doing business requires capital, borrowing money requires repayment, investment requires risk, and doing bad things requires a price."

References:

HNA Group: Creditors apply to the court for bankruptcy reorganization of our group _ Netease Finance

What is hidden behind the May Yongmei Group after the reform? -China enterprise report

Three questions about overseas mergers and acquisitions of private enterprises: Where did the money come from and why did the regulatory authorities take the shot? _ Finance _ China. com

The Fall of Hu Huaibang | Special Feature Selection _ Caixin Weekly Channel _ Caixin. com

Reasons for HNA's bankruptcy

The reasons for HNA's bankruptcy are: excessive mergers and acquisitions and expansion, resulting in unbalanced financial leverage. In 21 and 211 alone, HNA successively acquired companies including: Australian AllCO Group's aviation leasing business, Turkish aircraft maintenance company MYTECHNIC, Norwegian listed company GTB, etc. Over the past few years, HNA's M&A investment has exceeded 4 billion US dollars, involving a wide range and a large scale. After this round of mergers and acquisitions, the proportion of HNA's main business has been less than 4%. HNA has gradually deviated from its original development track.

HNA Group is a large enterprise group, which includes aviation, tourism, finance, real estate and even logistics and oil and gas resources, covering a wide range. Its subsidiaries include Deutsche Bank, Hualong Securities, Haiyue Shares, Northeast Electric, Caesar Travel, etc. The aviation owners under HNA Group belong to China Hainan Airlines Holding Co., Ltd., which is the aviation industry represented by Hainan Airlines.

Since its establishment in 1993, HNA Group has developed from a single local air transport enterprise to a multinational enterprise group after 26 years of development. HNA Group takes the main business of air transportation as the core development direction, and takes aviation leasing and aviation technology as the auxiliary support platform to consolidate the foundation of the sustainable development of its main business.

HNA is one of the four major airlines in China. It has a young and luxurious fleet consisting mainly of Boeing 787, Boeing 737, Airbus A35 and Airbus A33. It is suitable for passenger and cargo flights, creating a high-quality first class with independent space and a spacious and comfortable new business class for passengers.

HNA Group went bankrupt. Why did the former giants fall into this situation?

The problem is that after the company has accumulated certain assets, it quickly expanded through mergers and acquisitions around the world, and then the capital chain broke, triggering a chain reaction, and HNA finally exploded. In fact, HNA's choice of bankruptcy has long been expected. Since 217, HNA, a super aircraft carrier with trillions of assets, has been insolvent. You know, once upon a time, HNA ranked in the top 2 among the world's top 5 companies, including its massive overseas acquisition of assets, which made its brand influence unparalleled.

things started in 1992. HNA became the first joint-stock airline after restructuring, and it grew rapidly through a unique leveraged financing model. Almost every HNA used a lot of financial leverage in its development, almost in the form of "empty gloves and white wolves", and it got a lot of money from the market. With the money, HNA naturally doesn't want to be quiet, so it chooses to make mergers and acquisitions all over the world. The targets of mergers and acquisitions are not missed from real estate and finance to tourism and aviation. Along with its assets, its huge liabilities.

according to the latest data, HNA's accumulated debt exceeds RMB 1.2 trillion, including wealth management products and other types of bonds. We should know that even the largest airline in China has a total assets of only over 3 billion yuan, and HNA's liabilities are already higher than the total assets of the top three airlines in China. It will take a long time just to sort out these bonds.

HNA didn't think about saving itself. It first issued wealth management products to its employees, hoping that employees could use idle funds for the wealth management issued by the company, but this measure didn't work. Finally, HNA had to exchange air tickets to pay back the money. Fortunately, the state made timely moves, ruled out the task force and settled in HNA to solve the debt problem. Originally, in 219, HNA breathed a sigh of relief and thought that it would be able to pay off the debt slowly next.

however, I didn't expect that the aviation industry suffered heavy losses after an epidemic, and HNA was naturally not spared. Even though the previous working group had made the best efforts to improve the operating conditions of HNA, HNA could not survive an epidemic and had to go bankrupt.

After bankruptcy, the market is still interested in HNA. Although HNA is still heavily in debt, it has been operating for many years and has many high-quality assets, including 12 domestic, 2 overseas passenger licenses and 4 freight licenses, which are all high-quality aviation resources. And most importantly, it has a large number of local routes in Hainan.

You should know that in recent years, Hainan has started to build a free trade zone. Driven by the duty-free market, Hainan is expected to usher in a new round of opening up in the future. There is no doubt that Hainan Airlines has so many routes, which is a huge advantage. At present, many enterprises in the market still want to participate in the division of Hainan Airlines. If enough funds are injected into Hainan Airlines in the future, maybe Hainan Airlines will usher in new hopes.

according to the previously announced timetable, the liquidation group of HNA will complete the reorganization draft including the selection of war investment at the end of June. In other words, in the next period of time, the capitalists who are interested in participating in HNA will soon emerge one after another.

In view of the difficulty of HNA's reorganization, its serious insolvency and long time span, both the reorganization plan and the subsequent war investment will go through a complicated process of coordination and arrangement.

Behind the history of HNA Group's M&A is the desire to expand, the capital itself, and the embarrassing inferiority.

In p>27, Jia Hongxiang, who had been a sailor for 4 years, ushered in the highlight of his life and became the chairman of Daxinhua Logistics.

Daxinhua Logistics Group is a powerful subsidiary of HNA Group. During his four years in office, Jia Hongxiang brought the advantages of his old club "Buy in buy buy" to the extreme, and successively acquired Tianjin Shipping, Yantai Shipping and Shandong Haifeng, which had a wonderful time.

However, Jia Hongxiang is good at acquisition, but how to manage these companies after acquisition is a thorny issue. Until 211, it took Jia Hongxiang four years to figure it out, which eventually led to the green performance report of Grand China Logistics, problems in the capital chain and a lot of legal lawsuits.

Therefore, Jia Hongxiang was defeated, but he left a latent crisis for HNA Group.

In p>28, Daxinhua Logistics Group rented a huge ship with the Cape of Good Hope from Shagang Shipping, and HNA Group was the guarantor. After two years, Daxinhua received the ship, but Shagang Shipping did not receive the rent.

Shagang Shipping Company can't receive the money. What can we do? Go through legal procedures.

the lawsuit has been going on for more than a year, and in the end, Daxinhua must have lost. HNA Group, as a guarantor, also has the responsibility to sit together.

At this time, HNA Tourism introduced a luxury cruise ship "Henna" from the United States, which is the first luxury cruise ship in the Mainland, adding another red flower to HNA Group's career line.

influenced by the lawsuit, HNA Group never compensated Shagang Shipping for the guarantee liability fee of US$ 2.75 million. Under the circumstance that Daxinhua Group was "globally owed", Henna started its contribution to HNA Group: it successfully made its maiden voyage to Vietnam in 213 and its second voyage to South Korea.

it happened in Korea.

Because Shagang Shipping has never understood that HNA Group is a company with assets of 3 billion yuan, why not lose money?

it's outrageous that rich people don't pay back the money they owe. !

So we took the lawsuit to South Korea. That is to say, Shagang Shipping presented the evidence and guarantee to the Korean court. After the Korean court confirmed that it was correct, it seized the Henna, which had just swam to Jeju Port in South Korea.

At that time, there were almost more than 2,3 crew members and tourists on board.

Upon receiving the news, HNA Group immediately set up a special public relations team to calm the tourists' emotions, then sent five planes to South Korea to pick up the tourists, and then made some connections, so that people at the top could put pressure on the Korean courts and manipulate public opinion to make people think: South Korea, what you did was not right.

judging from the public relations means of HNA group, it is a beautiful public relations battle example to press hard step by step and interlock with each other to reduce the loss to the minimum, and successfully let the Henna go home.

however, judging from this incident, those investors have seen the problem of crisis prevention of HNA Group and will be more cautious in investing in HNA Group in the future.

And Daxinhua Group announced bankruptcy and reorganization in this year.

something happened to Daxinhua group, and HNA group was in trouble.

However, HNA Group did not learn from the crisis that occurred in Grand China Group. Seven years later, it also embarked on the same fate as Grand China Group.

2

HNA Group's predecessor was Hainan Airlines. In 1993, Hainan Airlines was established, and the company only had 1 million yuan, which could not even afford the wings of an airplane.

however, this year brought the east wind of shareholding system reform. With this good news, Hainan Airlines earned 25.1 million yuan, but it still couldn't afford to buy a plane.

It's all right. HNA Group has super financing means. Without any mortgage, it got two Boeing 737-3 s from Hainan Bank of Communications.

On May 2, 1993, HNA's maiden voyage flew from Haikou, Hainan to Beijing, heralding its first victory.

Next, HNA's first task is to find more planes and develop more routes, so that some people are willing to take their planes.

but where can I get the money? By earning airline tickets, it is estimated that it will take several years to return to the capital. HNA obviously will not choose a slow and steady way, but chose his old craft: financing.

in p>1995, HNA received $25 million in financing; After two years, HNA listed on the B-share market, raising 277 million yuan; In another two years, the value of HNA will rise, and the A-share listing will reach 943 million.

if you have money, you will be bold and have a wide range of ways. Hainan Airlines has focused on financing and development, and in just a few years, it has become an important local aviation in China.

in 2, HNA received his first blow, and his sense of inferiority also came from this.

on December 11th, 21, China joined the WTO, which indicates that China will join the globalization process, and at the same time, it also brings a sense of crisis to domestic enterprises: foreign enterprises have come to China to grab business.

and in terms of strength, all the civil aviation planes in China add up to be inferior to a major international aviation group.

before China formally joined the WTO, CAAC began to lay out the layout and announced the reorganization of domestic civil aviation enterprises, with Air China, China Eastern Airlines and China Southern Airlines as the leading companies. In other words, Hainan Airlines will be acquired by one of the leading companies.

however, as a civil aviation company that has spent seven years developing, it is hard to get some achievements, and it will not give them away in vain.

Li Weijian, then CEO of HNA Group, said: A table with four legs is better than a table with three legs.

this fourth leg is HNA group.

At this time, HNA Group faces the following problems: few routes and small scale; The geographical distribution and policy support are beautiful.

in order to solve the dilemma, Shun