London – Terra Firma, the private equity firm that owns
major record label EMI, has secured "verbal commitments" from
investors to cover a loan payment due to Citigroup, but needs the vote of 75%
of its 200 investors in order to prevent a possible takeover by the lender who
helped finance its acquisition of EMI, the Times Online reports.
head Guy Hands has received assurances from investors to commit an additional $159
million to EMI, which would reportedly cover terms of the loan until next
spring; Hands had previously hoped to raise $546 million, to cover interest
payments on its $4.6 billion loan from Citigroup through 2015.
If Hands is
unable to secure approval from enough Terra Firma investors, he would be forced
to seek outside investments — but has only until May 14 to do so or else Citi
will be in a position to potentially take over control of EMI.
If Terra Firm is
successful, the Times reports the company will look to sell its Christian music
label and resurrect plans to license its U.S. music catalog.