The outlook for Marconi appears to be improving

The leftover bill from its revamp 16 months ago has been paid ahead of the 2008 deadline, saving the company �55.8m in interest payments.

Effectively, Marconi is debt-free and able to focus on growing the business.

The "re-emergence of Marconi" has been completed, announced chief executive Mike Parton.

Fully focused

Born out of the industrial giant GEC, Marconi found itself on the verge of collapse in 2000 after piling up �4bn in debt, and survived only after undergoing a drastic restructuring.

We have emerged with a strong balance sheet and can now fully focus our efforts on growing our business Mike Parton, Marconi chief executive

However, shareholders saw their holdings virtually wiped out after a debt-for-equity swap was agreed with its creditors last year.

The crisis was triggered by a costly switch from electronics to telecoms which saw it pay for companies at peak prices during the tech boom.

As profits tumbled and debts grew, thousands of jobs were lost.

After restructuring, Marconi relisted on the stock market as Marconi Corporation last October and its trading performance began to improve.

This and better-than-expected returns from business disposals have enabled it to repay its debts early.

"The early pay down of all of our restructuring debt is an excellent achievement," Mr Parton said.

"We have emerged with a strong balance sheet and can now fully focus our efforts on growing our business."