EMI seeks a fresh £100m cash injection

first_img Tags: NULL Show Comments ▼ Wednesday 18 August 2010 8:16 pm whatsapp whatsapp More From Our Partners Brave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com EMI seeks a fresh £100m cash injection KCS-content EMI is confident private equity investor Terra Firma will pump a further £100m or so into the business next March to help it avoid a breach of its loan covenants, it is understood.Maltby Capital, EMI’s holding company, is expected to require an equity cure “substantially in excess” of the £87.5m injected this year when the first quarter of 2011 closes. Guy Hands, Terra Firma’s dealmaker-in-chief, will have to persuade his backers – including large US retirement schemes such as the New York City Police Pension Fund – to hand over more cash.But a source close to the beleaguered record label said: “We are pretty confident of getting that equity cure when the time comes.”EMI’s underlying performance is improving, according to an update published yesterday, although the company remains saddled with £3bn of debt dating to Terra Firma’s buyout at the top of the market in 2007.Maltby Capital cut its losses by two thirds year-on-year due to falling writedowns and lighter restructuring charges in the 12 months to 31 March. But it still haemorrhaged £512m after tax due to a crippling interest bill on its loans to Citigroup.This was despite achieving sales of £1.7bn on the back of hits from Katy Perry and Gorillaz. Ebitda – a measure of underlying cashflow – increased 14 per cent to £334m.Separately, Citi and Terra Firma are expected to hold talks in New York next month to discuss a settlement of a longstanding legal row. Terra Firma has accused Citi, which ran the auction of EMI as well as providing debt, of falsely inflating the company’s price by claiming other bidders were involved when they were not. Sharelast_img

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