Embattled Hong Kong Airlines Ltd. (HKA) may again face the risk of losing its flying license due to financial concerns, a little more than a year after getting a reprieve from the local aviation authority.
The 14-year-old airline’s dilemma has emerged as the low-cost carrier’s major stakeholder, the once high-flying conglomerate HNA Group Co. Ltd., is dealing with its own financial problems.
HKA is just the latest firm pushed to the brink of crisis by HNA Group’s struggles under a mountain of debt incurred during its early global spending spree that at its peak boosted total assets to 1.2 trillion yuan ($186 billion).
As requested by creditors and pending court approval, Hainan-based HNA Group may move toward restructuring under China’s bankruptcy law. A government-appointed working group expects as many as 500 companies linked to the troubled conglomerate to go into…