Customers, suppliers and employees can be reassured by the progress we have made Mike Parton, Marconi chief executive

The struggling telecoms firm said it had reached an agreement with its banks and bondholders about repaying its �4bn ($6.4bn) debt.

It also announced that it was appointing a new chairman, and said that it would be cutting a further 600 posts as part of its restructuring plans.

The company has been negotiating the details of its debt repayments over the past few weeks.

No guarantees

Chief executive Mike Parton said the agreement represented a significant step towards the conclusion of Marconi's financial restructuring.

"Customers, suppliers and employees can be reassured by the progress we have made," he said.

But the company warned that there might still be hitches.

"There is no guarantee that the negotiations relating to the restructuring will reach a satisfactory conclusion," it said in a statement.

The completion of the restructuring, which will leave shareholders with just 0.5% of the company, has also been delayed until 15 March against a previous target date of 31 January.

More job losses

Marconi also announced that its new chairman would be John Devaney, former chairman of the logistics group Exel.

The company has already cut thousands of jobs.

But it said it expected to lose another 600 posts during the course of its restructuring.

Marconi said it made an operating loss of �235m ($374m) in the first six months of the financial year.

It said market conditions remain "very challenging", although the UK market had begun to show signs of stabilising.

However, increased competition for new orders is leading to price competition between rival groups, particularly in Asia.

"Operators are beginning to think about growth, but it's yet to translate into confirmed new orders," said the company.