ZTE lenders fear ‘sacrifice’ amid China, US dispute

By Pan Yue
10 May 2018

ZTE Corp’s travails have taken a toll on the Chinese telecommunications firm and its bank lenders, with the company seeking a waiver after a covenant breach on a $450m loan. Despite the Chinese government throwing its weight behind ZTE, smaller lenders in the syndicate are worried about the ramifications, writes Pan Yue.

The Hong Kong and Shenzhen listed company has had a tough few weeks. It sent out a waiver request at the beginning of May to lenders that chipped in for a $450m loan sealed in 2014, asking them to brush aside a covenant that ZTE’s stock could not ...

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