HNA units make plans to claw back $17b misused funds

Three listed units of China’s indebted HNA Group announced plans to recoup at least 112b yuan ($17b) of misused funds, undisclosed debt guarantees and questionable investments by its major shareholders and their affiliates. Hainan Airlines Holding Co. will ask its parent to repay part of its debt while two other group firms are paring the stake held by their controlling shareholders. The carrier will transfer interest-bearing debts of at least 72.5b yuan to HNA and HNA Aviation Group, holding them responsible for the wrongdoings, according to a Feb. 9 exchange filing. The plan has been endorsed by the majority of its creditors, the filing said. The clawback plan comes nearly two weeks after the three companies disclosed misappropriation of funds by some of its shareholders and related entities, deepening the woes of the once high-flying Chinese conglomerate whose global acquisition spree left it with a crushing debt load. The revelations have raised concerns that the corporate governance lapses may scare away any possible suitors.<br/>