Guy Hands’s Terra Firm may have to ask clients for triple the amount to keep EMI afloat until 2015.
Terra Firma plans to raise 360 million pounds ($551 million) by the middle of June, which would allow the company to comply with its covenants over the next five years, said the person, who declined to be identified because the information is private. The record label of Coldplay, Queen and Pink Floyd had previously considered seeking 120 million pounds, enough to meet obligations until 2011.
The private-equity firm has written down about 90 percent of its 1.5 billion-pound investment in the music company, which accounts for about a third of its fund, a person close to the matter said previously. EMI said yesterday it is preparing a long-term business plan to secure additional funds and the project will be completed by mid-June.