Marconi, the UK telecoms equipment manufacturer, is poised to complete a debt restructuring process that will cede control of the company to its lending banks and bondholders, leaving equity investors with only a fraction of its capital.

The company, which owes £2.3bn (€3.6bn) to banks including HSBC and Barclays, and £1.7bn to its bondholders, has been struggling to cope with its vast debt burden this year. Falling equity prices and depressed conditions in the telecoms sector have driven Marconi's share price sharply lower in 2002, leaving the company valued at less than £50m.