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China's Hainan Airlines rises by maximum 5per cent on restructuring plans

China's Hainan Airlines rises by maximum 5per cent on restructuring plans

FILE PHOTO: A Hainan Airlines Airbus commercial passenger aircraft is pictured in Colomiers near Toulouse, France, November 26, 2018. REUTERS/Regis Duvignau/File Photo

SHANGHAI : Shares in Hainan Airlines, the flagship carrier of embattled Chinese conglomerate HNA Group, rose as much as 5per cent on Monday, its maximum level allowed for the day, after it gave an update on its restructuring plans.

Sources told Reuters on Monday that China's HNA Group will receive strategic investment of 38 billion yuan (US$5.9 billion) after its restructuring, which will go to eleven of its entities including its flagship carrier Hainan Airlines.

Hainan Airlines said in a separate statement on Monday that it would use funds from strategic investors and future operating income to repay debts.

(Reporting by Brenda Goh; Editing by Tom Hogue)

Source: Reuters

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