Marconi and subsidiary's restructuring plans set for approval by creditors

By Carlise Newman

Chicago, April 22 - Marconi plc said Tuesday that schemes for both Marconi plc and its subsidiary Marconi Corp. have received over 90% of votes from creditors in favor, and the company will likely release its interim security ahead of its scheme meeting slated for April 25.

As part of the arrangements to effect the restructuring, Marconi Corp. agreed to provide interim security to its principal lenders, being the syndicate banks, secured bondholders, and Barclays Bank plc. The interim security was taken over cash held by Highrose Ltd., a special purpose subsidiary of Marconi Corp., in accounts held with third-party banks. The interim security arrangements took effect on Sept. 13, 2002 and were amended on Dec. 13, 2002 and March 28.

To become effective the schemes must be approved by 75% of the creditors present. On April 22, voting intentions in connection with Marconi Corp.'s scheme and Marconi plc's scheme were both over 90% in favor. Therefore, the company expects the interim security will be released ahead of the scheme meetings on April 25.

On March 31 Marconi plc, a London-based telecommunications company, said that the court had ordered separate meetings of creditors of Marconi plc and Marconi Corp. in order to consider and approve the schemes of arrangement in relation to Marconi plc and Marconi Corp.

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