A report in London’s Evening Standard states that EMI’s owner Terra Firma approved a resolution on June 10 that would allow it to inject an additional £500 million into sinking ship EMI Music. The resolution gives EMI’s parent company the right to issue shares up to £500 million until 2015. Although the label says it has no plans to make this move which will piss off shareholders by reducing their shares’ value, it gives them the right to do so without a shareholder vote if things continue their pear shaped run.
Last month Terra Firma injected another £105 million ($159 million) from existing investors into EMI after the label breached covenants in its debt with Citigroup. The label, which is bleeding cash like a stuck pig, is expected to breach covenants again next year requiring another massive cash injection.
