Report: Terra Firma Secures EMI Investments
Gets investor approval to raise $156 millionLONDON -- EMI Group owner Terra Firma Capital Partners has reportedly secured investors' approval to raise £105 million ($156 million), to avoid a breach of the major's loan covenant with Citigroup.
Terra Firma needed the support of 75% of its investors to go ahead with the equity cure. The Wall Street Journal said the private equity firm had secured enough support by the voting deadline on Monday night.
Terra Firma has until May 14 to notify Citigroup -- which holds more than £3 billion ($4.4 billion) of EMI debt -- that it has funds to prevent a loan default, with payment due by June 12.
The Times said Citigroup had appointed a restructuring adviser before the vote, in case it has to take control of EMI.
Terra Firma faces further such loan tests in 2011 and 2012. A spokesman for Terra Firma did not respond to a request for comment.