Three listed units of China's HNA disclose embezzlements of nearly $10b

Three units of HNA, once China's most acquisitive conglomerate, said nearly $10b had been embezzled by shareholders, in disclosures to stock exchanges that come amid a government-led probe into the deeply indebted group. A total of 61.5b yuan ($9.57b) had been embezzled by shareholders and other related parties, Hainan Airlines Holding Co, HNA Infrastructure Investment Group Co and Shenzhen-listed CCOOP Group Co said late on Friday. The three companies and their subsidiaries had also provided non-compliant guarantees for 46.5b yuan in financing, according to the statements filed after creditors of their parent applied to a court for the conglomerate to be placed in bankruptcy and restructured. The move came after a local government-led working team concluded due diligence at HNA earlier in January, and laid out risk disposal plans, enabling it to move to the next stage of resolving a multi-year liquidity crisis. The government-appointed working team expects as many as 500 companies linked to HNA Group to go into bankruptcy restructuring, Chinese financial magazine Caixin reported on Saturday.<br/>