Report by : Gan Yung Chyan, KUCINTA SETIA
News (1)
Lucky Air ruled for bankruptcy and reorganization by the court and is one of 10 HNA subsidiaries accepted to undergo such
On 18 February 2021, the Kunming-based subsidiary of Hainan Airlines, Lucky Air, issued an announcement that on 10 February 2021, the company received the (2021) Qiong Po Shen No. 13 Civil Ruling from the Hainan Provincial Higher People’s Court (“Hainan Provincial Higher Court”) and (2021) Qiong Po Shen No. 13 "Decision Letter". According to the "Civil Ruling" and "Decision Letter", the Hainan Provincial Higher People's Court ruled to accept creditors' application for bankruptcy and reorganization of Lucky Air, and designated the HNA Group liquidation team as the administrator to carry out various reorganization work.
According to the "Civil Ruling Letter" (2021) Qiong Po Shen No. 13 and (2021) Qiong Po No. 13 "Decision" issued by the Hainan Provincial High Court, the Hainan Provincial High Court believes that the company's funds are seriously insufficient and the property is difficult to realize and cannot be paid. Period debts and obvious lack of solvency are in line with the reorganization acceptance conditions.
According to the Hainan Provincial Higher People's Court issued (2021) Qiong Po Shen No. 13 Announcement, creditors should declare their claims to the administrator before March 31, 2021. The first meeting of creditors in the reorganization of Yunnan Lucky Air Co., Ltd. will be held at the Supreme People's Court National Enterprise Bankruptcy Reorganization Case Information Network (http://pccz.court.gov. cn) will be held online. Creditors who declare their claims in accordance with the law are members of the creditors' meeting and have the right to participate in the creditors' meeting.
Lucky Air said in the announcement that the company will actively carry out bankruptcy and reorganization work and fulfill the legal obligations of debtors in accordance with the law. If the company successfully implements the reorganization and completes the reorganization plan, it will help solve liquidity problems and optimize assets and liabilities. Structure, resolve debt risks, and enhance the company's ability to continue operations and profitability. In the follow-up, the company will actively cooperate with the courts and managers to carry out relevant reorganization work, actively do a good job in daily operation and management, and will strictly follow the relevant regulations on corporate bond issuance and duration management, timely, accurately and completely perform the disclosure obligations to maintain the bonds The legal rights of the holder. As the reorganization process takes a period of time, there is uncertainty as to whether the company can successfully reorganize, and there is a risk of being declared bankrupt by the court due to the failure of the reorganization. Investors are advised to pay close attention to and pay attention to investment risks.
News (2)
Kunming Fei'an applies for reorganization of Lucky Air
On 29 January, HNA Group officially announced bankruptcy and reorganization. On 30 January, HNA Holdings issued an announcement that many of its subsidiaries have been reorganized by creditors. On 18 February, HNA Holdings announced that 10 subsidiaries (China Xinhua Airlines, Air Changan, Shanxi Airlines, Lucky Air, Urumqi Air, Fuzhou Airlines, GX Airlines, KAC Investment, HNA Technology, Fushun Investment) are accepted under the court's ruling for reorganization.
Among them, the creditor Kunming Fei'an Aviation Training Co., Ltd. applied to the court to reorganize Lucky Air Co., Ltd. According to Tianyan Check, Kunming Fei'an is a wholly-owned subsidiary of Sichuan Haite High-Tech Co., Ltd.
Lucky Air is a member company of HNA Group. Its registered place is Kunming, Yunnan Province. Its operating bases are Kunming, Lijiang, Xishuangbanna, Chengdu, Sichuan, Mianyang, Zhengzhou, Henan, etc. On 26 February 2006, Lucky Air successfully launched flight services.
According to information on Lucky Air’s official website, as of June 2020, Lucky Air’s fleet has reached 55 aircraft, with 98 air routes (including 96 domestic routes and 2 international routes), and 73 open cities (including 71 domestic routes, 2 international routes), involving 30 provinces, autonomous regions, municipalities directly under the Central Government, 2 countries (including China) and regions. It owns the second largest aviation base in Yunnan Province.
Data show that by the end of the third quarter of 2020, Lucky Air's assets totaled 15.325 billion RMB and liabilities were 8.011 billion RMB. In the first three quarters of 2020, Lucky Air's total operating income was 2.857 billion RMB and a net loss was 1.228 billion RMB.
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