HNA Denies Complaints of Embezzlement While Fighting for Control of Hong Kong Airlines

HONG KONG (Reuters) – Chinese group HNA, a troubled Chinese conglomerate, has denied allegations of embezzlement and financial irregularity by a group of rival Hong Kong Airlines (HKA) shareholders. that both parties were fighting for control of the carrier.

The charges were brought by Zhong Guosong and Frontier Investment Partner, who together control 61% of HKA's shares. On Tuesday, they said they took control of the carrier and handed over to Zhong, former director of HKA, chairman after a special shareholders' meeting.

The spokesman said Wednesday, via a spokesman, that an investigation had been opened on "the embezzlement of HKA badets and a serious financial hijacking by the HNA group parties".

HNA said in an email sent Friday to Reuters that the allegations "are false".

"The HNA Group is committed to the highest standards of integrity in all its activities and expects the same from all its representatives," he added.

Hou Wei is still chaired by the HKA website.

Hou joined HKA in September of last year after more than four years with Hainan Airlines controlled by HNA, according to his LinkedIn profile.

HNA holds approximately 29% of HKA's capital, after reducing its majority stake two years ago.

This week's battle comes as HKA struggles for survival. Earlier this month, airline executives told shareholders that the company needed at least HK $ 2 billion ($ 254.95 million) to avoid the risk of losing its license. 39 – and that she had lost about HK $ 3 billion last year.

At this meeting, however, representatives of Zhong and Frontier asked for details of the 2018 accounts and questioned the close ties between the HKA and HNA affiliates, which include HKA loans and equity interests in groups. of HNA, according to the HKA accounts of 2017 seen by Reuters.

On Thursday, the two parties clashed again when Zhong and Frontier accused HNA of storming HKA's head office and withdrew documents, which were denied by a spokesman. HKA's word.

HKA said later in the day that additional security personnel visible in the lobby and lobby of its offices should preserve the order disrupted by the shareholder dispute.

On Thursday evening, the Hong Kong Transport and Housing Bureau announced that it had met with representatives of both sides and was monitoring the situation.

He added that the Civil Aviation Department had strengthened its oversight of HKA air operations so as not to disrupt the holiday weekend.