Another week, another EMI yarn. This time it appears that owner Terra Firma’s boss is going for broke. Guy Hands – currently stuck in New York due to the volcanic cloud over Europe and no doubt in a plush hotel – is now asking investors to chip in £360 million to keep the company from falling in to the hands of its bankers. That’s three times what he had previously come to them cap in hand for.
He’s asked for the extra money to keep Citigroup at bay until 2015 in the hope that the company starts making money for its recorded music division through digital sales. This larger sum will cover any potential future loan covenant breaches and a a new forecast shortfall on the EMI pension scheme, which company auditor KPMG has indicated could range from £10 million ($15.4 million) to £200 million ($308.4 million).
