The chairman and chief executive of China’s HNA Group, previously one of the country’s most acquisitive companies, were both detained by police for alleged criminal offenses on Friday, Sept. 24.
54-year-old Tan Xiangdong, also known as Adam Tan, who was appointed as CEO of HNA Group in 2016, has been arrested by police in China’s southern province of Hainan along with HNA Chairman Chen Feng.
A filing with the Securities and Exchange Commission for Park Hotels & Resorts Inc. on March 15, 2017, shows that Tan is a U.S. citizen.
Before filing for bankruptcy, HNA Group, which included airlines, hotels, and commercial buildings, was one of China’s largest private enterprises. They split into four independent companies on Sept. 20.
“The operations of HNA Group and its member companies are stable and orderly, and the bankruptcy and restructuring work is progressing smoothly according to the law,” the company said in a statement on its official WeChat account, Reuters reported.
Members of the Chinese Communist Party who worked for the company were informed that police had apprehended Chen and Tan in a meeting on Friday. Participants were encouraged to support the party’s leadership in HNA.
The news happens to coincide with the demise of Evergrande, China’s largest property developer, also on the verge of bankruptcy.
Tan’s detention comes after the release of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou, from three years of house arrest in Vancouver and the release of Michael Spavor and Michael Kovrig, two Canadians detained in Beijing for almost the same amount of time.
According to reports, the representative for the U.S. embassy in Beijing declined to comment on the arrests.