Troubled British telecoms company Marconi has said it will miss its deadline to refinance $4bn of debt which it agreed with creditors in August.

A "delay in finalising paperwork" was to blame and the issue would be "considered" by creditors in the coming days.

"The company is having constructive discussions with its creditor committees regarding a new target date for completion within the first quarter of 2003," the firm said in a statement.

The Financial Times newspaper reported that the delay was cause by a dispute between debt-laden telecoms equipment maker and creditors on future financing.

Marconi transformed itself from an industrial business - it was previously called GEC - into a telecoms company at the height of the dot.com boom.

But when worldwide demand for telecoms equipment dried up the company was plunged into crisis.

On track

August's refinancing deal was agreed with creditors to save the company. It involved cutting its debt levels drastically but giving control of the business to the creditors in a debt-for-equity swap.

Marconi said it "still expects to complete the restructuring in line the terms announced in August, including the initial cash distribution of £260m, of which £95m has already been paid in the form of interest".

The company was due to publish listing documents this month which would have wound up the old Marconi and created a new business, Marconi Corporation.

Marconi Corporation would then be owned by its creditors, mainly bond holders and banks.

The release of interim results has also been pushed back from 26 November to 5 December.