Embattled telecoms group Marconi said today it was still in talks with bondholders and banks over its long-awaited financial restructuring deal.

In a statement to the stock exchange, the group said negotiations were continuing with its creditors and further announcements would be made "in due course".

The announcement came in reaction to mounting speculation that the firm had agreed a life-saving deal with its creditors.

It is expected that, following a deal, the existing holding company, Marconi plc, will be wound up and a new entity, Marconi Corporation, will be listed on the stock market.

In total, the group has announced more than 13,000 job cuts to slash costs.

For its last financial year, it reported a massive £5.7bn loss.

If Marconi does not agree the crucial deal with its creditors, it could face bankruptcy.

Shares in Marconi edged up 0.04p to 1.75p in the first few minutes of trading on the London Stock Exchange today.

The group, which owes banks and bondholders £4bn, is expected to emerge following the restructuring with debt of around £300m.