Several sources are reporting that Guy Hands will tell Citi this week that a $105 million pounds ($155 million U.S.) payment will be made to stop the lender from foreclosing on EMI at least through March of 2011. The funds came as Hands persuaded the required 75% of his Terra Firma investment group to add the needed cash.
Hands and his Terra Firma Capital Partners Ltd have until May 15th to tell Citi it intends to pay and then 30 days more to complete the transfer. This gives Guy Hands additional time to shore up enough investor support if needed. He is also trying to raise another £255 million to help EMI meet its loan covenants through March 2015.
All of the funds raised are going to handle dept, which could still leave EMI short of operating capital, and previous reports suggest that the company is still very much for sale. All this means a continued uncertain future for EMI staffers who suspect that more layoffs are ahead.