ZTE debt in focus after share suspension

摘要

Lenders on a US$450m loan maturing in July for Chinese telecoms equipment group ZTE face an event of default after the suspension of the company's shares on the Hong Kong and Shenzhen stock exchanges. ZTE's shares on the two bourses were suspended on April 17 following US sanctions against the company. Under the terms of the four-year bullet loan, signed in July 2014, a suspension of ZTE's shares on the Hong Kong stock exchange for more than 14 trading days constitutes an event of default.