Terra Firma boss and EMI owner Guy Hands reached into his own pocket to help fund the continuation of the music giant for another year.
EMI received a $155 million transfusion from British private equity owner Terra Firma in order to keep the label out of lender Citigroup’s hands and keep it within debt covenants.
The money was wired on June 11 and Citigroup received confirmation of the payment yesterday, according to a source close to the bank.
Hands won the approval of fund investors to inject more money into the company that houses The Beatles and the Rolling Stones catalogs.
The source close to Citi said: “My understanding was that it [Guy’s investment] was a key selling point to investors.”
EMI had been negotiating the sale of a 49 percent interest of its publishing unit to buyout giant KKR, though reports suggest those talks have ended.
The question now for investors is whether Hands will be able to renegotiate the company’s debt ahead of a court battle with Citigroup. EMI’s debt is around $3 billion.