Money allows music unit to meet loan agreements

EMI’s parent company, Terra Firma, will invest additional coin in the troubled music giant, enabling the company to meet its loan agreements with Citigroup and staving off a potential foreclosure.

The company, which made the announcement Friday, also said it informed Citigroup about the new funding and that the process is expected to be completed no later than June 14.

“We are very pleased to have received this confirmation of an additional investment, which is a vote of confidence in EMI from Terra Firma and its investors, following the significant improvement in the company’s operating performance,” EMI exec chairman Charles Allen said.

Announcement followed a report earlier in the week that Terra Firma chairman Guy Hands had succeeded in persuading 75% of his fund’s backers to inject an additional £105 million ($156 million) so that EMI could meet its banking covenants ( Daily Variety , May 12).

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