Equal ranking for Marconi loan and bonds in doubt


Marconi has given its bondholders a further headache to think about. In a work-out situation there are question marks over whether the £2.2 billion bank loan that redeems in March 2003 will be paid out before the bonds, even though both rank equally. Bank lenders may have the edge and get paid out first purely because the loan matures before the bonds.

“There is no clarity over this situation right now,” says Duncan Warwick-Champion, telecoms credit analyst at UBS Warburg in London. “Structurally

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