Liaoning Fangda Group will become the controlling shareholder of Hainan Airlines if the transaction goes ahead, HNA announced on September 12.

HNA Infrastructure Investment Group announced on Sunday that state-owned enterprise Hainan Development Holdings may become its controlling shareholder after new investment.

In January, HNA declared bankruptcy and started to seek strategic investors for its aviation business.

On June 16, Fangda Group registered Hainan Fangda Aviation Development Co., Ltd. and holds 30 percent of the company’s shares. Two other subsidiaries of Fangda hold 48.3 percent of the shares. 

Fangda Group has acquired several companies on the brink of bankruptcy. The conglomerate focuses on carbon, steel, and chemical sectors. 

According to HNA, there is still a legal procedure to follow before the merger comes into effect.