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.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies