EMI in talks over $300m injection

TROUBLED record company EMI is in talks with America’s Universal Music and Sony over a licensing deal that could raise up to $300m (£200m) to help pay down its debts.

An agreement with one of the labels would yield an upfront fee in return for a five-year contract that would give the winning bidder the right to distribute EMI artists such as Coldplay in the Americas, including Latin America.

EMI’s private equity owner, Terra Firma, hopes to secure the cash ahead of an imminent covenant test on its ability to repay $2.6bn to Citigroup. Failure to inject funds before mid-June will see EMI handed to the bank.

A source told City A.M.: “There are talks still ongoing but who can say if they’ll come to anything.”