The High Court in Britain has approved the debt restructuring plans of Marconi.
That decision clears the way for the introduction of new shares in the telecoms equipment maker next week.
Marconi had received creditor support for the two parts of its £4 billion sterling debt restructuring plan last month. The new Marconi Corporation shares are due to relist on the London Stock Exchange on May 19.
Under the restructuring, banks and bondholders will swap the £4 billion debt for 99.5 per cent of the equity in Marconi Corp., which will replace the soon-to-be-dissolved Marconi Plc. Current shareholders will be left with the rest.
But even after the refinancing, Marconi will face a telecoms market weighed down by weak growth and cut-throat competition.
Marconi Plc warned recently markets for its products and services continued to decline, with core sales falling 4 per cent in the fourth quarter to the end of March.
But the company is cutting costs, with a target of £450 million pounds in annual costs this year, down from £490 million last year.
Shares in Marconi Plc were down 7.7 per cent to 1.2 pence in midday trade.