By Jerry Del Colliano The hottest thing in the music business is Lady Gaga. The coldest thing is EMI. EMI is now saying that it may not be able to operate as Terra Firma’s $6.5 million acquisition without seeking bankruptcy protection. Never mind Katy Perry or the Beatles catalog. Chairman and founder Guy Hands has written to investors asking them for more money to pump up his latest survival plan. Even if Hands comes up with the money, it could be a short fix. There is another major shortfall of cash expected by March of 2011 when loans become due. Citibank (or as as Bill Maher calls it “Shitty Bank”) could be your next Clive Davis (at least in their minds). Obviously to readers of this space this sounds all too familiar. When radio consolidators or big-eyed record industry entrepreneurs buy companies at high interest rates, there is only one thing they can do. Refinance at higher rates (like Lew Dickey has done at Cumulus). This passing of the financial buck eventually leads to hitting the wall (as Citadel has done). It all doesn’t matter in the end. Citadel will never be a viable radio company again, but the sum total...
Source: Inside Music Media
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