Marconi Re-Launches Company As Marconi Corp.

May 20, 2003 by Jeff Shepard

Marconi plc (UK) announced that it has re-launched itself on the London stock market as Marconi Corp. The launch marks the completion of the company's protracted financial restructuring, which followed a collapse in its share price and a change of management 18 months ago. Since then, 30,000 jobs have gone, businesses have been sold and most of the company’s manufacturing has been outsourced to reduce debt and get back into profit.

The company, which is effectively owned by its creditors, hopes it has put behind it the financial woes of the last two years. Debt, which has saddled the telecoms equipment supplier, is now below £800 million from previous levels of around £3 billion. The company said restructured debts would comprise £450 million in senior notes, £306 million in junior notes and other bank debt of £40 million. It is estimated that after restructuring the company will have an annual debt interest bill of around £70 million.

"Today is a very significant day for Marconi and for everyone associated with our company," said Mike Parton, CEO of Marconi Corp. "Our emergence today with a significantly improved financial position, substantial improvements in operating performance, and a sharper strategic focus on telecommunications equipment and services allows us to look to the future with greater confidence and optimism."