EMI Records 'facing £1.5bn pre-tax debts'

EMI Records 'facing £1.5bn pre-tax debts'

Postby dutchman » Sat Feb 06, 2010 4:53 pm

EMI Records has cast doubts over the future of the company after reporting a pre-tax loss of £1.5bn.
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Guy Hands of Terra Firma with singer Katy Perry

The 115-year-old label, which was bought by private equity firm Terra Firma for £4bn in 2007, is reportedly now looking for investors to inject a further £120m in order to stay afloat.

Should EMI fail to raise the money, lender Citigroup could seize control of the company as early as June, reports The Daily Telegraph.

Saddled with the debt of Terra Firma's buyout, falling record sales as well as costly refinancing have stretched EMI to breaking point in recent years.

The label's restructuring measures also included axing 2,000 jobs in a bid to stem spiralling costs in 2008.
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