Terra Firma Prepares Another $486M Injection, If...
(UPDATED) Publicly EMI is touting its success with Lily Allen, Coldplay and Akon They are also reportedly sitting on a treasure trove of unreleased Michael Jackson songs. But The Guardian is reporting that behind the scenes, EMI continues to have severe financial troubles and owner Terra Firma may have to come to the rescue with £300 million ($486 million USD).
Before Terra Firma injects those millions, however, they are asking the holder of the lions share of EMI's £2.5BN debt, Citibank, to accept a £500m write off. If the troubled bank refuses,;the future of EMI becomes uncertain.
Enter Edgar The Savior ?
Warner Music Group head Edgar Bronfman has long coveted a merger with EMI. And it just so happens that at this ver moment he's setting up housekeeping in London to give (he says) his children a broader world view. It also just so happens that WMG recently restructured its own debt; albeit at 9.5%.
Should Terra Firma fail to come to an agreement with Citibank, then unloading some or all of EMI to Bronfman, even at fire sale prices, could feel like a bargain. That's if...and it's a big if... WMG can find the cash to complete the sale.
Bruce Houghton: My apologies for all the typos and bad writing in the original piece. It's what I get for writing at 6AM with the flu. Hopefully, the re-written piece above makes more sense.
