RESOLUTION
The java utility ServiceZoneRenamer should be used from under cpanel userUtility for changing service zone name. Changes zone name, LServers names, rebuilds DNS.
WARNING: USE ONLY ON EMPTY INSTALLATION OF H-SPHERE.
Usage java psoft.hsphere.tools.ServiceZoneRenamer -oz zone_name -nz
zone_name
-oz|--old_zone Name of the currently present service zone
-nz|--new_zone Name which should be set to service zone