Marconi to issue new senior notes in dollars only

New York, May 13 - Marconi plc said the new senior notes to be issued in its bankruptcy reorganization will be denominated only in dollars.

The London-based telecommunications equipment company said too few investors asked for euros for it to issue euro-denominated securities.

In total, $717.1 million of the new notes will be issued, equivalent to £450 million. The issuer will be Marconi Corp. plc.

Marconi's restructuring received U.K. court approval on Monday. A U.S. bankruptcy court hearing is scheduled for Wednesday.

The plans were previously backed by creditors, receiving the approval of 99.98% of Marconi plc creditors and 99.97% of Marconi Corp. creditors.

Creditors will receive a total of:

* £340 million cash; the equivalent of £450 million in principal amount of senior secured notes due April 2008, denominated in dollars, with interest payable quarterly in cash at a rate of 8% accruing from May 1;

* $300 million plus the dollar equivalent of approximately £117 million in junior secured notes due Oct. 2008 denominated in dollars, paying interest at a rate of 10%, or in kind, at a rate of 12% accruing from May 1;

* 99.5% of Marconi Corp. plc's stock.

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