Struggling telecoms equipment vendor Marconi Plc has been forced to abandon the date of January 31, 2003 to complete its restructuring after squabbling amongst bankers on the future financing of its operations.
Marconi now says it hopes to set a new target date in the first quarter of 2003 and says creditor constituencies will consider revised proposals in the next few days. In the light of the delay, it has postponed publication of its interim results, due on November 26, to December 5.
Laden with debt and faced with crumbling revenue, Marconi announced a deal in August in which its bankers and bondholders effectively took over the company leaving shareholders with just 0.5% of the equity. But reports suggests that when it got down to the fine print, some bankers balked at the amount they would have to contribute to fund continuing operations.