The Clock Is Ticking For EMI
Label Group Has Just 90 Days To Find A Miracle
A 90 day clock began ticking for EMI late yesterday when talks to license catalog to Universal or Sony ended, according to sources. Price was reportedly the primary reason that discussions ended, but a concerned creditor who is owed $2.5 billion and at least one pending lawsuit certainly didn't help.
Failure to make the deal, means that EMI will fail its solvency test and miss a major loan payment to Citi. EMI and owner Terra Firma now have 90 days to find an injection of cash as well as to develop a viable plan to move forward.
Inside EMI, staffers are bitter that their efforts to improve the company's position will have little effect on the outcome. "We're being punished for past excesses in both the record and the financial industries," an EMI veteran told Hypebot.