EMI’s Play For Warner Not Playing Well With Banks

Recording giant EMI confirms that it is in talks to buy Warner Music. But analysts say that EMI’s enormous debt is an imprediment to the deal, and its creditors are ready to downgrade its borrowing capacity. “They have very limited debt capacity and if they were to buy a valuable and profitable business it would have some earnings with it, but our concern is that there is not a lot of scope to increase the overall debt leverage.”