Tough Week Ahead For EMI?
April 19, 2010 at 4:40 AM (PT)
THE TIMES OF LONDON reports, "Hundreds more staffers face the axe at EMI as managers prepare to present a five-year plan to investors to persuade them to pour more money into the troubled music group.
EMI Chairman CHARLES ALLEN reportedly will present his plan for the future of EMI to owner TERRA FIRMA head GUY HANDS this week. The TIMES reports, "ALLEN is expected to say that profits at EMI MUSIC could be close to £300m by 2015 in the best case, against less than £200m for the year to MARCH 2010. To get there, the former ITV chief executive will need to wield the axe again, as well as make a fresh attempt to lease EMI’s American music catalogue to rival record groups."
JUNE 14th is the date when TERRA FIRMA needs approval from 75% of investors to draw down £120m in additional financing or risk CITIGROUP seizing control of the company. CITIGROUP will be given a report this week outlining EMI's financial figures for the last quarter, so it can calculate the bill pending for EMI.