On November 29, *ST HNA issued an announcement on the implementation of the conversion of the capital reserve fund into equity capital of the reorganization plan.
There are two important things:
First, after doubling the share capital, the price remains unchanged. That is, there will be no division in the actual sense.
Second, the record date of the conversion of the equity is December 3, 2021, the ex-dividend date is December 6, 2021, and the listing date of the conversion of the share capital is December 7, 2021.
The former content is that after the listing of 16.4 billion shares, the opening price of HNA's shares is still the same as the closing price of the previous trading day, and there will be no ex-rights price.
The latter content is to officially announce that on December 3, 2021, Fangda Group will officially join Hainan Airlines.
According to the content of the announcement, HNA Holdings introduced 1 reorganization investor in this reorganization: Hainan Fangda Aviation Development Co., Ltd.
Founded on June 16, 2021 with a registered capital of 30 billion yuan, Hainan Fangda Airlines is a shell company established by Liaoning Fangda Group to acquire Hainan Airlines.
The investors are several companies under the Fangda Group, such as Jiangxi Big Steel, Liaoning Fangda Group, Jiujiang Pinggang Steel, Pingxiang Pinggang Anyuan, Sichuan Dazhou Iron and Steel.
If the investment is completed, Hainan Fangda Airlines may become the controlling shareholder of the company.
Of the 16.4 billion shares added, a total of approximately 4.4 billion shares were used to introduce strategic investors at a consideration of $2.80 per share, and a total of $12.32 billion was used to pay reorganization costs and pay off part of the debt.
The restructuring investor, Hainan Fangda Airlines, issued a letter of commitment: the commitment to transfer the additional shares will not be transferred in any form within 36 months from the date of registration to its name, including but not limited to various forms such as collective auction, block transaction and agreement transfer. However, the transfer of the aforementioned additional shares between different entities controlled by the same actual controller is not subject to the aforementioned thirty-six months of provisional announcement.
The announcement also explains how the shares of creditors will be transferred.
According to the Reorganization Plan and the Notice of Assistance in Enforcement issued by the Court, the conversion of the capital reserve fund into additional shares will be directly registered to the special account for the disposal of the property of the bankrupt enterprise of HNA Holdings opened by the company administrator.
Subsequently, the court will, upon the application of the Company and/or the Administrator, separately deduct the shares registered to the Manager's securities account to the securities account designated by the reorganization investor, the relevant creditor or the transferee.
Due to the large number of creditors who need to be transferred subsequently, the specific completion time of the matter shall be subject to the completion time of the transfer after the judicial department issues a notice of assistance in enforcement.
In other words, although December 3 is the share registration date, some creditors may not have obtained shares on this day, and may be later.
However, Fangda has no problems with joining HNA.
On December 3, the new owner of HNA will become Fangda Group.
Born in 1973 and ranked 116th on the national rich list with a net worth of 51 billion yuan, Fang Wei will become the new boss of Hainan Airlines.