China plans sale of HNA’s non-aviation assets via trust

The Chinese government plans to dispose of HNA Group’s non-aviation assets through a trust, according to people familiar with the matter, as the provincial authorities that took control of the once high-flying conglomerate last year move ahead with its restructuring. The trust will manage the sale of HNA’s assets not in the aviation space, a process that will likely take some time, said the people, asking not to be identified because the plan is yet to be made public. A state-backed entity will become a strategic investor in what’s left of HNA, they said. Under the plan, HNA’s creditors will be allowed to swap their debt into equity in the new, pared-back company or gain a stake in the trust managing the divestment of the other assets, depending on their lender status, the people said. The plan has been approved by Chinese regulators and is expected to be implemented soon, they said. A spokesman for HNA didn’t immediately respond to requests for comment, while calls and an email to the Hainan government weren’t returned. Rumors about HNA’s situation have been swirling for days, with Hu Xijin, the editor-in-chief of China’s state-run Global Times newspaper, tweeting Friday that HNA Group’s operations are “coming to an end,” and that an announcement on restructuring could come at any time. <br/>