Doubt Cast On Survival Of EMI
February 5, 2010, 14 years ago
Andrew Edgecliffe-Johnson and Salamander Davoudi from the Financial Times is reporting:
EMI’s auditors have raised “significant doubt” about its ability to continue as a going concern in a report that lays bare the parlous state of Terra Firma’s £4.2bn ($6.5bn) investment in the music company behind THE BEATLES and IRON MAIDEN.
Guy Hands, Terra Firma’s founder and chairman, has written to investors in two of its private equity funds asking them to inject another £120m, subject to EMI Music producing a new strategic plan.
He must come up with the money by June 14 or risk losing the company to Citigroup, his bankers.
However, accounts for the year to March 2009, released on Thursday, make clear that even if Terra Firma secures this equity, it will face another “significant shortfall” against a test on covenants in its loans by March 2011.
Read more here.
