London
– Terra Firma, the private equity firm that owns major record label EMI, is
seeking to raise an additional $160 million to help repay loans to Citigroup,
which helped finance the firm’s $4.7 billion acquisition of EMI, according to
published reports. Terra may soon default on loan payments due, if it fails to
raise the additional capital.
The Wall Street Journal noted that one loan, tied
to EMI Music Publishing, is not in as much danger as the one backed by EMI
Music, which is struggling in relation to the music publishing unit.
A source
told The Journal that the $160 million, if secured, would enable EMI Music to
keep current with loan requirements through March 2011.
Related Links:
http://snipurl.com/u9ubz
(Financial Times)
http://snipurl.com/u9ucf
(WSJ)
