It’s nearly crunch time for EMI: if the company fails the next test of its banking covenants, it may fall into the hands of co-investors Citigroup, who would be likely to put EMI up for sale. However, the Times claims that Terra Firma boss Guy Hands is mulling a plan to lease EMI’s North American catalogue to rival labels for five years for an estimated £400 million. “If Mr Hands could raise £400 million from leasing the rights, he could dip into the pot every time EMI was in danger of breaking a banking covenant,” explains the paper. However, there’s a suggestion that Citigroup could block the deal if it thinks it’s not in the interests of EMI’s stakeholders – i.e. itself. Source: Times Online

Like what you’ve read here? This is just a snippet from our subscription service.

Our subscribers get the most important digital music news and analysis delivered to them every morning and full reports every week plus access to a massive archive of data and previous reports.

For a free two week trial of Music Ally, sign up here. No strings attached – we promise!

EarPods and phone

Tools: platforms to help you reach new audiences

Tools: Kaiber

In the year or so since its launch, AI startup Kaiber has been making waves,…

Read all Tools >>

Leave a comment

Your email address will not be published. Required fields are marked *