I am disappointed that we have had to come to this conclusion regarding Steve but it is in everyone's interest to clarify the position

Derek Bonham, chairman, Marconi

Mr Hare, who had been with the firm for 13 years, is to leave at the end of January.

But he has already stepped down from Marconi's board, and has been replaced as chief financial officer.

Mr Hare has been blamed by some of Marconi's banks for failing to reach a deal to reorganise the company's £3bn ($4.8bn) debt in March.

The collapse of the deal had left the lending banks facing heavy losses.

A refinancing agreement to save the company from collapse was eventually reached in August, but criticism of Mr Hare continued.

'A difficult time'

Chairman Derek Bonham said: "I am disappointed that we have had to come to this conclusion regarding Steve but it is in everyone's interest to clarify the position.

"The board and I wish to express our gratitude to Steve for his considerable efforts during what has been a particularly difficult time for him."

Mr Hare's role has been taken on by Chris Holden, the group financial controller within the business, while a search begins for a permanent replacement.

Rise and fall

Mr Hare joined the firm, then General Electric Company, in 1989.

He acted as finance director of a number of divisions, in the UK and US, assisting the ill-fated transformation of stalwart GEC into its Marconi guise.

He was appointed chief financial officer in April 2001, three months before the bungled trading statement which prompted a halving in the firm's share price.

New acting finance director, Chris Holden, is a former auditor at Arthur Andersen.

Marconi's debts spiralled to £4bn after it overspent in the tech boom.

Last month it reported that sales had continued to slide and market conditions remained tough.

Marconi shares stood 0.09p higher at 2.44p in morning trade on Thursday.