LONDON (Hypebot) – Publicly EMI is touting its success with Lily Allen, Coldplay, Akon and The Black Eyed Peas. 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 is coming to the rescue with £300 million ($486 million USD).
Before Terra Firma injects the millions, however, it's had Guy Hands is asking Citibank, which hold the lions share of the £2.5BN that EMI owes creditors, to accept a £500m loss on its loans. If the US 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's just so happens that he's setting up housekeeping in London at this very moment to give (he says) his children a broader world view. It also just so happens that WMG has just successfully restructured its own significant debt albeit at 9.5 %.
Should Terra Firma fail to come to agreement with EMI, unloading some or all of the label group to Bronfman, even at fire sale prices could feel like a bargain. That's all is…and it's a big if….EMI can find the cash to complete the sale.
