EMI in Breach

BREACH OUT, EMI’S THERE: EMI Music has breached its debt covenant with Citigroup after talks for a licensing deal with Universal Music Group collapsed early this morning, according to a report in the U.K. Guardian. Terra Firma must now go to investors in its bid to raise $190 million by the June 12 deadline, which is when Citigroup can seize the company. Under terms of EMI’s “covenant lite” lending agreement, the bank will allow the music company the extra time to make good on its breach. The pressure is now on Guy Hands and new EMI boss Charles Allen to find the funds to prevent that from happening. Sounds like a job for McGruber. (3/31p)