UK - Terra Firma pumps £28m into EMI

The buyout house is thought to have previously injected a similar amount into the company in March. It is reported that EMI has breached the banking covenants related to its £2.6bn debt pile.

Terra Firma de-listed the record label in September 2007, investing £1.5bn of equity into the group in a deal valued at more than £3bn. At the time the business was recording an annual loss of £260m against revenues of £1.75bn.

Earlier this year Terra Firma reportedly wrote down its investment by half as part of a move that saw its wider portfolio written down by around EUR 1.4bn. The investor subsequently returned to LPS approximately EUR 70m of performance fees generated since 2004, with Guy Hands sacrificing his EUR 40m bonus.

Hands has since stepped down as CEO of Terra Firma, taking up the position of chief investment officer. He was replaced by former Nomura colleague Tim Pryce.

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