Shareholders lose out in Marconi liquidation
Crippled hi-tech giant Marconi, will go into voluntary liquidation this week as the firm launches the first phase of its long-awaited financial restructuring.
Shareholders will see the value of their stock become almost worthless when the survival deal is signed later this week.
According to reports, Marconi will hand over all but 1% of the firm to its banks and creditors as it struggles to cope with its £4bn debt mountain. The new vehicle is likely to retain the Marconi name.
Once a champion of the new economy which predicted huge gains as telecoms systems were expanded and upgraded, Marconi’s fall from grace has been nothing short of spectacular.
Following the collapse of the dotcom bubble, Marconi was left unable to pay debts run up during an ambitious international expansion programme in the late 1990s.
Shares which peaked at over £12, will now be worth only 2.5p each when the latest changes take effect.