ZTE has proposed a $10.7 billion financing plan and nominated eight board members as part of the strategy to rejig the top management.

ZTE proposed to allow the board to apply for a $10.7 billion credit line, including a 30 billion yuan or $4.69 billion from Bank of China and $6 billion from China Development Bank.

China’s #2 telecom equipment maker is trying to come out of the crisis period due to the 7-year ban on sourcing of components from US-based technology companies. ZTE with the new management will resume business with American suppliers, who provide about 25-30 percent of the components used in ZTE’s equipment.

The United States imposed the seven-year supplier ban on ZTE in April after it broke an agreement to discipline executives who conspired to evade US sanctions on Iran and North Korea. Both Iran and North Korea are in the hit list of the US

ZTE last week agreed to pay a $1 billion fine to the U.S. government. US will not lift the ban until ZTE pays the fine and places another $400 million in an escrow account in a U.S.-approved bank for 10 years.

ZTE said Zhongxingxin, its controlling shareholder with 30.34 percent stake, has nominated 8 new board members. These 5 non-independent directors include Li Zixue, Li Buqing, Gu Junying, Zhu Weimin, and Fang Rong. All these non-independent directors are from state-linked firms that are shareholders of or have investment relationships with Zhongxingxin.

Cai Manli, Yuming Bao and Gordon Ng are the independent non-executive directors nominated by ZTE. Voting on this will take place at an AGM on June 29.

A Reuters report said ZTE’s management overhaul could result in about 40 senior executives being replaced. ZTE needs to replace its 14-person board and remove all leadership members at or above the senior vice president level.