Cash-strapped Chinese conglomerate HNA Group is facing bankruptcy and may be forced to sell off all its non-aviation businesses.
It announced it is facing a petition for bankruptcy by creditors.
The group owns Hainan Airlines and has investments in another dozen airlines.
However the group also disclosed in a filing that nearly $10 billion has been embezzled by shareholders from three business units.
One of these includes Hainan Airlines.
Speaking of the bankruptcy petition, HNA said: "Our group will cooperate with the court to conduct judicial review in accordance with the law, actively promote debt disposal, and support the court to protect the legal rights and interests of creditors."
HNA went on a mammoth shopping spree several years ago snapping up stakes in major tourism and aviation brands including Swissport and Hilton.
At one point it owned assets worth about $150 billion but has been selling assets off over the past few years to service its huge debt.
It is still weighed down by billions of dollars of debt and Bloomberg reports it will be forced to dispose of its non-aviation assets through a trust.
It has major stakes in airlines including Tianjin Airlines, Beijing Capital Airlines, Grand China Air, and Hong Kong Airlines.
Its airlines have a combined fleet size of about 900 planes.
Written by Ray Montgomery, Asia Editor
