Marconi shareholders to lose all
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Manufacturing News, Source : TheManufacturer.com
Published : 28 Aug 2002 9:07
Marconi has confirmed that its shareholders are set to end up with virtually nothing following a financial restructuring at the firm.
The company said that current shareholders are likely to be left holding just 0.5 per cent of share capital.
As part of the huge debt-for-equity swap that will leave the company owned by its banks and bondholders, shareholders will be offered “warrants allowing the purchase of five per cent of the issued share capital, subject to certain criteria.”
But Marconi warned that negotiations were ongoing and details "may be subject to change".
The company said that the new structure being discussed was designed "to provide flexibility for Marconi Group's ongoing success, maximise cash and overall recovery for creditors and allow existing Marconi shareholders to maintain an ongoing economic interest in the Group".
The company expects to be left with a debt of £300m following the deal.
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