Marconi clams up as finance talks enter new phase
Constructive discussions, apparently
Marconi Plc has abruptly called off a meeting to reveal details of its five-year business plan with the excuse that talks on a refinancing deal with bank and bondholder creditors have "entered a new phase."
Leaks from the company earlier this week suggested that a conclusion of talks with bankers could be more than a month away, although the company originally hoped to announce an agreement to coincide with today's publication of its full-year figures.
Marconi said tripartite discussions with bankers and bondholders are underway and have been constructive in nature. "In the circumstances it has been agreed between the three parties that it would be helpful if no new information material to these discussions is published at this time," it said.
The struggling London, UK-based telecoms equipment manufacturer has had a hard time convincing bankers it has a future, and in March it pulled out of talks with its bankers on a new financing deal because it feared that it couldn't meet the interest charges.