Marconi today declined to comment on reports that its finance director would be forced to step down as part of a multi-billion pound restructuring deal agreed with bankers to keep the troubled company afloat.
Accountancy Age, 03 Sep 2002
Speculation has been mounting that Steve Hare will stand down as a result of the company's life-saving deal, which executives believed was the only way to stave off administration. Banks are said to blame him for spending six months seeking alternatives to such a radical restructuring plan before being forced to admit defeat.
However a company spokesman refused to confirm or deny that Hare's departure was imminent. 'I have no comment to make,' he told AccountancyAge.com.
Marconi's £4.9bn debt restructuring deal will see the current listed company, Marconi plc, wound up though the group expects to apply for a listing on both the London and NASDAQ markets through its wholly owned subsidiary, Marconi Corporation plc.
Shareholders will lose most of their investment, and will instead receive 0.5% of the share capital of Marconi Corporation post restructuring.
The deal is still subject to the approval of the creditors and further due diligence by the banks and bondholders and is expected to be finalised in November 2002. An agm is expected to take place in early October.
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