MONI news. Moving nicely. In @ .231.
Marconi slashes debt to £2.9bn
By Nick Farrell [26-04-2002]
Disposal programme a success, says chief exec
Troubled electronics manufacturer Marconi has announced that it has halved its debt since September.
According to company figures, net debt on 31 March was well within its target range at £2.9bn, down from £4.3bn last year.
However, Marconi is still making losses which are expected to be as high as £800m, although some of this is due to one-off restructuring costs.
A spokesman said that, although that the company is working with bondholders and lenders to reach an agreement on restructuring its finances, it will have to "accept certain restrictions on financial and corporate activities".
Marconi has slashed more than 13,000 jobs in order to reduce costs, and has seen its share price collapse.
Debts have been reduced by selling businesses, and the company says it has generated more than £360m as a result of the restructuring.
Chief executive Mike Parton explained that the cash, combined with the company's successful disposal programme, had helped it to achieve a £1.6bn reduction in net debt during the period.
And he expects things to get better. "I don't think anybody believes this market will stay in this situation forever. We are confident that we have a business structure which will survive through these difficult times," he said.
"To survive in the BB market, you have to treat every stock as a POS. Don't marry any of them."
