Battered British telecoms equipment maker Marconi underlined the collapse in its markets by reporting a pre tax loss of £5.7 billion and a steep fall in sales, although the results had already been well flagged in a trading update last month.
The company said today it might hand control of the business to its lenders in return for debt relief, pushing its battered shares even lower.
Marconi's shares, which once fetched more than £12, were down 16 per cent at 7.65p in early trade, valuing the former blue-chip at about £263 million. It was once worth more than £30 billion.
Marconi, which fell on hard times last year after its customers cut spending, confirmed speculation that a debt-for-equity swap was on the cards in talks with bankers and bondholders which are owed £4 billion sterling.
Marconi owes £2.2 billion in syndicated loans with banks and £1.8 billion in bonds.