Banks extend lifeline to Marconi

Shares in Marconi had fallen to 25.5p by 11am this morning, more than a penny down on yesterday's 24-year low.

The troubled telco, with a market value of just £715m and debts of £4.4bn, met with around 30 banks for two hours on Tuesday to discuss how it would pay back £1.2bn of its debts by next March.

Those at the meeting said it had been generally constructive, and that the banks were largely supportive of the proposals presented by Marconi's new senior management team of chief executive Mike Parton and chairman Derek Bonham.

Marconi wants to raise £500m by selling off parts of the firm, and is due to receive £780m from selling one of its divisions earlier this year.

The telco will meet with the banks again next month.

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