ZTE Shrugs Off Bankruptcy Claims With New Bosses, Says Plans in Place for Bad News From US
Xu Wei
DATE:  Jul 03 2018
/ SOURCE:  Yicai
ZTE Shrugs Off Bankruptcy Claims With New Bosses, Says Plans in Place for Bad News From US ZTE Shrugs Off Bankruptcy Claims With New Bosses, Says Plans in Place for Bad News From US

(Yicai Global) July 3 -- Chinese handset-maker ZTE has put to bed speculation about its bankruptcy and transfer to Fiberhome Telecommunication Technologies as it plans to continue business operations under new management while preparing for the US decision on lifting its selling ban on chips. 

ZTE held an annual shareholders' meeting on June 29 and appointed a new board of eight directors, led by Li Zixue as the chairman, Chinese newspaper Economic Information Daily reported today. Former 14 directors of the Shenzhen-based firm handed their resignation letters at the same meeting.

ZTE signed a superseding settlement agreement with the US commerce ministry earlier in June so that the Chinese firm could overcome its breach of US sanctions and go on with buying the North American country's technologies. Under the deal, ZTE will have to pay USD1 billion in fines and place USD400 million in an escrow account, as well as change its board of directors and senior leadership. 

ZTE's new team has been working on a detailed plan before July, and the personnel changes will not cause significant fluctuations in business operations, former chairman Yin Yimin said, adding that the firm has even prepared for the worst-case scenario. The US commerce ministry said in the settlement agreement that the seven-year ban will be lifted once ZTE pays the fine.

Editor: Emmi Laine

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Keywords:   US,ZTE,Fiberhome Communications Technology,Sanctions,Telecom,Chip,IPR