FlightDetent
28th Sep 2021, 05:16
www.caacnews.com.cn/1/6/202109/t20210927_1331384.htm? (http://www.caacnews.com.cn/1/6/202109/t20210927_1331384.html)
The original deadline set by the bankruptcy court to sort the mess out was 30 SEP.
On September 27, HNA's main business held a second debt meeting, and the details of the restructuring plan were disclosed.
Gu Gang mentioned at the regular production and operation meeting of HNA on September 13 that after the reorganization, the total financial expenses of the previous high aviation main industry are expected to decrease by more than 80%, the aircraft leasing cost will decrease significantly, the operating historical arrears will be fully paid off, and sufficient cash can be retained in the book. As the fourth largest airline in China, HNA will make up for the shortcomings in the competition with the same industry in an all-round way and usher in the best moment in history. Is what you said true?
According to the comments of various parties and market reflection at that time, most people did not understand the meaning of "the best moment in history", and most thought Gu Gang was just for inspiration. At the second debt meeting on September 27, the manager of HNA and the joint working group announced the restructuring plan and stated the current situation of HNA again. Combined with the detailed analysis of the scheme, this sentence is indeed confirmed: after the reorganization is completed, the main business of HNA aviation will be the best time in history.
First, the amount of debt fell sharply and the asset liability ratio returned to normal. According to the plan, after debt to equity swap to pay off nearly 40 billion debt, the interest bearing debt of HNA holdings decreased to 60 billion after restructuring. After the reorganization, HNA holding's total assets after paying off the debts were 170 billion and its total liabilities were 138 billion, with a debt ratio of 81%, which was almost the same as that of the three major airlines.
Secondly, the best financing conditions in history, financial costs to the lowest. The remaining 60 billion bonds are paid off at a 10-year term, and the interest rate is only 2.89%, which is equivalent to the interest rate of 10-year Treasury bonds on the market. The debt retention rate under the restructuring plan is 2.89%, and the annual financial cost is expected to be about 2 billion yuan, which is far lower than the current financial cost of 5-6 billion yuan of the three airlines.
This is already the best financing condition in the industry. Compared with the previous financial expenses, it can indeed meet the "total financial expenses of the main aviation industry are expected to drop by more than 80% after the completion of reorganization" proposed by Gu Gang.
Third, the lowest aircraft leasing cost in the history of HNA, and the production and operation have been guaranteed for a long time. At the second debt meeting, Gu Gang disclosed that HNA Holdings has reached a debt restructuring plan with major aircraft lessors at home and abroad, and major lessors have given substantial exemptions for the arrears of aircraft rent before bankruptcy and reorganization; In addition, for the rent after bankruptcy and reorganization, the standard has not only been reduced by 15-20%, but also the wide body passenger plane will be charged by flight hour instead of fixed rent in the next few years. These measures can save a lot of aircraft rental expenses for HNA holdings, and the cost has been reduced to the same level as that in Southeast China, which will lay a very solid foundation for the sustainable operation of HNA in the future.
Fourth, it has abundant cash flow and has the ability to resist long-term risks. At the second debt meeting, Gu Gang also revealed that after the reorganization, the war investment has invested 38 billion, of which HNA holdings will receive about 25 billion cash flow supplement. After fully paying off the operating arrears, HNA's main business account may also have 10 billion cash for enterprise operation, and HNA's main business will really become an enterprise with healthy operation, And can be relatively carefree through the impact of continuing epidemic normalization.
After the completion of the reorganization, HNA Holdings' net assets have been "regularized", completely eliminating the delisting risk, and the core financial indicators such as assets, liabilities and asset liability ratio have improved significantly, which is close to the three major airlines; HNA's main business is a net and a game of chess. With HNA's existing fleet of 670 aircraft, it is better than the three airlines in terms of aircraft age, man-machine ratio and mature and flexible management ability, which will completely consolidate the position of the fourth largest aviation company in China; At the same time, join hands with zhantou to greatly improve its business strength, give full play to the management advantages of private enterprises, and take advantage of the free trade port to obtain many tax concessions such as aviation materials and aviation oil, which will have more advantages in market competition in the future.
After the reorganization, HNA's main aviation industry will usher in the best moment in history. Indeed, what he said is true.
(China civil aviation news, CAAC)
The original deadline set by the bankruptcy court to sort the mess out was 30 SEP.
On September 27, HNA's main business held a second debt meeting, and the details of the restructuring plan were disclosed.
Gu Gang mentioned at the regular production and operation meeting of HNA on September 13 that after the reorganization, the total financial expenses of the previous high aviation main industry are expected to decrease by more than 80%, the aircraft leasing cost will decrease significantly, the operating historical arrears will be fully paid off, and sufficient cash can be retained in the book. As the fourth largest airline in China, HNA will make up for the shortcomings in the competition with the same industry in an all-round way and usher in the best moment in history. Is what you said true?
According to the comments of various parties and market reflection at that time, most people did not understand the meaning of "the best moment in history", and most thought Gu Gang was just for inspiration. At the second debt meeting on September 27, the manager of HNA and the joint working group announced the restructuring plan and stated the current situation of HNA again. Combined with the detailed analysis of the scheme, this sentence is indeed confirmed: after the reorganization is completed, the main business of HNA aviation will be the best time in history.
First, the amount of debt fell sharply and the asset liability ratio returned to normal. According to the plan, after debt to equity swap to pay off nearly 40 billion debt, the interest bearing debt of HNA holdings decreased to 60 billion after restructuring. After the reorganization, HNA holding's total assets after paying off the debts were 170 billion and its total liabilities were 138 billion, with a debt ratio of 81%, which was almost the same as that of the three major airlines.
Secondly, the best financing conditions in history, financial costs to the lowest. The remaining 60 billion bonds are paid off at a 10-year term, and the interest rate is only 2.89%, which is equivalent to the interest rate of 10-year Treasury bonds on the market. The debt retention rate under the restructuring plan is 2.89%, and the annual financial cost is expected to be about 2 billion yuan, which is far lower than the current financial cost of 5-6 billion yuan of the three airlines.
This is already the best financing condition in the industry. Compared with the previous financial expenses, it can indeed meet the "total financial expenses of the main aviation industry are expected to drop by more than 80% after the completion of reorganization" proposed by Gu Gang.
Third, the lowest aircraft leasing cost in the history of HNA, and the production and operation have been guaranteed for a long time. At the second debt meeting, Gu Gang disclosed that HNA Holdings has reached a debt restructuring plan with major aircraft lessors at home and abroad, and major lessors have given substantial exemptions for the arrears of aircraft rent before bankruptcy and reorganization; In addition, for the rent after bankruptcy and reorganization, the standard has not only been reduced by 15-20%, but also the wide body passenger plane will be charged by flight hour instead of fixed rent in the next few years. These measures can save a lot of aircraft rental expenses for HNA holdings, and the cost has been reduced to the same level as that in Southeast China, which will lay a very solid foundation for the sustainable operation of HNA in the future.
Fourth, it has abundant cash flow and has the ability to resist long-term risks. At the second debt meeting, Gu Gang also revealed that after the reorganization, the war investment has invested 38 billion, of which HNA holdings will receive about 25 billion cash flow supplement. After fully paying off the operating arrears, HNA's main business account may also have 10 billion cash for enterprise operation, and HNA's main business will really become an enterprise with healthy operation, And can be relatively carefree through the impact of continuing epidemic normalization.
After the completion of the reorganization, HNA Holdings' net assets have been "regularized", completely eliminating the delisting risk, and the core financial indicators such as assets, liabilities and asset liability ratio have improved significantly, which is close to the three major airlines; HNA's main business is a net and a game of chess. With HNA's existing fleet of 670 aircraft, it is better than the three airlines in terms of aircraft age, man-machine ratio and mature and flexible management ability, which will completely consolidate the position of the fourth largest aviation company in China; At the same time, join hands with zhantou to greatly improve its business strength, give full play to the management advantages of private enterprises, and take advantage of the free trade port to obtain many tax concessions such as aviation materials and aviation oil, which will have more advantages in market competition in the future.
After the reorganization, HNA's main aviation industry will usher in the best moment in history. Indeed, what he said is true.
(China civil aviation news, CAAC)