Beijing Takes Over Anbang, Insurer That Owns Waldorf Astoria
- 6 years ago
Beijing Takes Over Anbang, Insurer That Owns Waldorf Astoria
BEIJING — The Chinese government said on Friday that it had seized control of Anbang Insurance Group, the troubled Chinese company
that owns the Waldorf Astoria hotel and other marquee properties around the world, and it had charged the company’s former chairman with economic crimes.
“The takeover management team will take effective measures to keep the company operating as usual,” the insurance regulator said, adding
that it would protect consumers and “the legitimate rights and interest of all stakeholders.”
The regulator said that the takeover could extend a second year if the company failed to complete an equity restructuring and resume operations.
China’s insurance regulator said in a notice dated Friday
that Anbang would be overseen for a year by a group that included China’s central bank, its securities and banking regulators, the country’s foreign exchange regulator and other government agencies.
The Shanghai Procuratorate, which handles prosecutions in the city, announced in a statement on Friday morning
that Mr. Wu, Anbang’s former chairman, had been indicted in the city’s First Intermediate People’s Court for fraudulent fund-raising and for improperly taking company assets.
A New York Times investigation two years ago found
that many of those owners were family or acquaintances of Mr. Wu, often hailing from his home region, in China’s Zhejiang province.
Though the companies are privately owned, their leaders often benefited from their political connections,
and they were often backed by cheap debt provided by China’s state-run banks.
BEIJING — The Chinese government said on Friday that it had seized control of Anbang Insurance Group, the troubled Chinese company
that owns the Waldorf Astoria hotel and other marquee properties around the world, and it had charged the company’s former chairman with economic crimes.
“The takeover management team will take effective measures to keep the company operating as usual,” the insurance regulator said, adding
that it would protect consumers and “the legitimate rights and interest of all stakeholders.”
The regulator said that the takeover could extend a second year if the company failed to complete an equity restructuring and resume operations.
China’s insurance regulator said in a notice dated Friday
that Anbang would be overseen for a year by a group that included China’s central bank, its securities and banking regulators, the country’s foreign exchange regulator and other government agencies.
The Shanghai Procuratorate, which handles prosecutions in the city, announced in a statement on Friday morning
that Mr. Wu, Anbang’s former chairman, had been indicted in the city’s First Intermediate People’s Court for fraudulent fund-raising and for improperly taking company assets.
A New York Times investigation two years ago found
that many of those owners were family or acquaintances of Mr. Wu, often hailing from his home region, in China’s Zhejiang province.
Though the companies are privately owned, their leaders often benefited from their political connections,
and they were often backed by cheap debt provided by China’s state-run banks.