Struggling telecom equipment maker Marconi said today its core first-quarter sales are down in line with its business plan for its financial restructuring.
Core sales were £510 million sterling, down 22 per cent on the same quarter the year before and down 26 per cent on the previous quarter.
Tripped up by an industry slump after a cash-draining acquisition spree, Marconi has had months of talks with lenders over its financial position. The former blue chip cannot cover the cost of its £3 billion in debt without a restructuring.
Marconi repeated talks with banks and bondholders were making progress and would probably end in a debt-for-equity swap for a significant proportion of its borrowings, leading to a substantial dilution for shareholders.