Chinese court says troubled HNA Group's businesses highly chaotic

Ruling cites governance failure and merges 320 affiliates in restructuring

20210316 HNA GROUP main image

The People's High Court of Hainan Province chose the path of essentially combining HNA Group companies after concluding that they are distinguished only by their names. © Reuters

KENJI KAWASE, Nikkei Asia chief business news correspondent

HONG KONG -- A Chinese court has ruled that HNA Group's corporate management was "highly mixed up" and more than 300 of its affiliates did not function as independent companies.

The People's High Court of Hainan Province in the civil case involving the once highflying conglomerate also decided to treat the group as a single entity in its bankruptcy proceedings going forward.

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