Saturday, 15 August 2009

EMI Records is on the brink of default

Great catalogue bought at the height of the private equity boom by someone who didn't have a clue how to run a record company but wanted to be in showbiz anyway

Aug. 14 (Bloomberg) -- EMI Group Ltd., bought by Guy Hands's Terra Firma Capital in a leveraged buyout in 2007, is working to keep its record-music unit, EMI Music, from defaulting on loans, the Wall Street Journal reported, citing unidentified people familiar with the matter.

EMI Music isn't making enough money to comply with a 950 million pound loan ($1.56 billion) from Citigroup Inc., the Journal said, citing the people.

I find it surprising that all of the copyrights owned by this company could not be more easily financed. Some form of re-organization may be avoidable but it is hard not to believe that there could be some new consortium that would try to rescue this great musical catalogue.

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