Marconi says "significant" proportion of debt likely to be swapped for equity

New York, June 20 - Marconi plc said that its restructuring discussions are likely to result in a "significant" proportion of its debt being exchanged for equity.

The expected recapitalization will lead to a "very substantial" dilution of the existing equity, the company added.

Restructuring discussions are currently under way between Marconi, its syndicate banks and an ad hoc committee of bondholders.

Marconi said the talks on a consensual recapitalization are making "good progress."

The London-based telecommunications equipment company currently has £4.3 billion ($6.4 billion) of debt.

"We continue our discussions as a part of a controlled process to effect the recapitalization of Marconi's balance sheet at the earliest opportunity," said Mike Parton, chief executive of Marconi, in a news release. "We are confident that our banks and bondholders will continue to be supportive during the process and that Marconi will emerge from this process with a significantly improved balance sheet."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.