ZTE is looking to secure financing worth a reported $10.7 billion and nominated eight new board members as it looks to recover from a crippling row with US regulators.
The China-headquartered vendor, which was forced to suspend its operations last month following an import ban by the US, was granted a reprieve last week on the condition it replaced its entire 14-person board, pay a $1 billion fine and place an additional $400 million in escrow.
After resuming share trading this week, the company outlined the first steps it was taking to comply with the rules set by the US Department of Commerce (DoC) and move on from its latest controversy.
Financial Times reported the company applied for a CNY30 billion ($4.7 billion) credit line from Bank of China and $6 billion from the Shenzhen branch of China Development Bank, a policy lender.
ZTE’s recent woes are estimated to have cost the vendor $2 billion in revenue, added FT.
The company must pay its fine within 60 days of agreeing the settlement (struck on 8 June) and complete its management changes within 30 days.
In a statement, ZTE unveiled a partial board revamp, with the nomination of the new members and the appointment of five non-independent directors: Li Zixue; Li Buqing; Gu Junying; Zhu Weimin; and Fang Rong. Reuters noted all five are from state-linked companies which are shareholders or have investment relationships with ZTE.
Three non-independent executive directors were also put forward: Cai Manli; Yuming Bao; and Gordon NG. All three have legal backgrounds. Yuming Bao, for example, served as a legal adviser to several multinational enterprises including Cisco and News Corporation.