According to the Wall Street Journal, EMI's parent company, Terra Firma, has loaned £10 million to its music company so that it doesn't default on payments on its rather large $2.7 billion loan from Citigroup. Then again, Terra Firma took out the loan in order to buy the music company, so that only seems fair. The Journal adds that EMI many need another pay out from its parent in March because it is due to have a relatively quiet fourth quarter in terms of major releases, the sort of big selling albums that generate sufficient revenues to contribute to debt payments. It's hoped, presumably, that big releases from Lily Allen, Pet Shop Boys, Keith Urban, Depeche Mode and the Beastie Boys later in 2009 will mean the major will rely less and less on Terra Firma to make its Citigroup payments.
Dec 9, 2008
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1 min read
Terra Firma covers EMI's Citigroup debts
According to the Wall Street Journal, EMI's parent Terra Firma has loaned £10 million to EMI so it does not default on payments on its $2.7 billion Citigroup loan.