WSJ: Terra Firma Gets The Funds To Save EMI
May 11, 2010 at 2:40 PM (PT)
THE WALL STREET JOURNAL is reporting TERRA FIRMA CAPITAL PARTNERS LTD. "has succeeded in its quest to raise £105 million ($156 million) to stave off a bank foreclosure on EMI GROUP."
EMI has until the end of this week to tell CITIBANK that it has raised the funds necessary to avoid default in mid-JUNE.
This additional $156 million is only a temporary solution, staving off foreclosure from CITIGROUP in mid-JUNE, and gives TERRA FIRMA's GUY HANDS until tje end of MARCH 2011 to deploy a turnaround plan. There are two more similar yearly financial hurdles to jump as analysts say that in order to pull off his turnaround plan, HANDS will need until at least 2015.
On top of this, there is the lawsuit TERRA FIRMA filed against CITI, accusing CITI of tricking it into firm into overpaying for EMI back in 2007. That lawsuit is set to go to trial in OCTOBER. It may serve to help CITI and EMI agree to a restructuring of the business and the debt.