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China debt crunch

Bankrupt HNA clears creditor hurdle in $170bn debt restructure

Core unit Hainan Airlines to receive investment from turnaround group Fangda

Hainan Airlines is expected to face continued headwinds, with travel demand still languishing from the coronavirus pandemic. (Photo by Yusuke Hinata)

GUANGZHOU -- HNA Group took a major step forward over the weekend in what is believed to be China's largest bankruptcy case to date, with creditors greenlighting an investment by a lesser-known conglomerate that has been involved in a series of turnarounds.

At 1.1 trillion yuan ($172 billion), HNA's debt dwarfs that of China's other high-profile bankruptcy cases, including Baoshang Bank's roughly 200 billion yuan and Tsinghua Unigroup's 160 billion yuan. Despite its recent progress, the conglomerate is expected to continue facing an uphill battle in its restructuring process, especially with core unit Hainan Airlines still suffering from the coronavirus' impact on travel.

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