Posted by Dan Rodriguez on Fri, May 29, 2009 at 11:08 am
The Wall Street Journal is reporting EMI could be looking at more tough times, as owner Terra Firma Capital has invested an additional $45 million in the label group, the second time it has had to re-invest in the last six months.
This additional capital will keep EMI within the terms of its debt agreements. Despite EMI’s insistence on having a plan to turn around this year, news has not been great as CFO Chris Kennedy left his position and another round of merger rumors with Warner Music Group has started.
UPDATE: An anonymous source from EMI tells Metal Insider that an internal company memo was sent today easing employees’ concerns. Allegedly the message says that EMI’s debt does not have the traditional loan covenant model, and the re-investments from Terra Firma were planned and all within forecasted amounts.