He's Now Trying To Raise Just Enough $'s To Save Label
(Updated) Guy Hands has just 10 days left to convince investors to add fresh funds to save EMI from the hands of the bankers at Citi. Because of the looming deadline, the Terra Firma boss has reportedly slashed his fundraising goal to just the £105 million needed to make one overdue loan payment and stop foreclosure for the next 10 to 12 months. Hands had originally been asking investors for £360 million.
A few of the firm's largest investors have apparently given verbal commitments, but Hands still needs to secure the support of 75% of his fund's 200 investors before the May 14th deadline. It may not be an easy decision for investors. On the one hand cost cuts have lowered overhead without apparently hampering the label group's ability to deliver hits. At the same time, however, the turmoil has led key artists like Paul McCartney to move their profitable catalogs and others to reexamine the risk of doing business with EMI at all.