EMI’s accountants have raised “significant doubt” about its ability to continue as a going concern, in a report that lays bare the parlous state of the £4.2bn investment by UK buy-out group Terra Firma in the music group. Guy Hands, Terra Firma’s founder and chairman, has asked investors in two of its private equity funds to inject another £120m. He must come up with the money by June 14 or risk losing EMI to Citigroup, his bankers. But accounts for the year to March 2009, released Thursday, indicate that even if Terra Firma secures this equity, it will have difficulty with a test on its loan covenants by March 2011. See also FT Alphaville here.

This entry was posted by Gwen Robinson on Friday, February 5th, 2010 at 5:55 and is featured in The 6am Cut London (5 Feb 2010) . Tagged with citi, emi, guy hands, terra firma. Edit this entry.