EMI's recorded music division had an OK second half of 2009 which, as previously reported, ensured the major record company was performing well enough to satisfy its principle money lender Citigroup's ongoing loan terms. And even seemingly enabled the music major to cover its own interest payments to the US bank. But that was in no small part thanks to the rather grand re-release of the Beatles catalogue all of which - unless ongoing lobbying efforts by the European record industry delivers some results - will come out of copyright in the next decade.

Certainly the chief of EMI owners Terra Firma, Guy Hands, recognises that the recent revenue boost at EMI Music is unlikely to be sustained throughout 2010 - however many press releases the company sends me telling us the firm has four titles in the US Album Top 10 this week. And this means the major will once again struggle to meet its commitments on the multi-billion dollar Citigroup loan Terra Firma took out in order to buy the music company back in 2007. 

Which is why Hands has reportedly asked investors in Terra Firma to inject another £100 million into Maltby Capital, the company through which the equity group owns EMI. It's not the first time Hands' financial backers have been asked to take a hit to keep his company's big music asset afloat, and last year they gave their backing to a plan to pump an extra billion into the music company on the condition Citigroup write off a billion of EMI's debts. That proposal fell through because Citigroup refused to play ball.

But the Financial Times reckons this latest ask of his investors is the biggest test of the Hands' abilities yet. Some of his backers may well be wondering whether EMI will ever be anything more than a dead weight for the equity group. Meanwhile, with the equity man now in a legal dispute with Citigroup over their role in the original EMI acquisition, the bank is unlikely to cut him any slack if his investors prove unhelpful.

The FT says that Hands has asked EMI Music boss Elio Leoni-Sceti for a reinvigorated business plan that can convince his investors that there is light at the end of the tunnel, even if it's an incredibly long tunnel. Apparently, proposals to flog off some of the firm's recorded music assets, such as its Japanese division or classical labels, were none starters because there was insufficient interest to ensure a buying price in line with the major's loan covenants with Citigroup.

Some wonder whether there is really anything Leoni-Sceti can say or do that will have any impact with investors. A major problem for EMI these days is that its finances are never out of the news. Record companies make most money by signing next big things to three to five album deals, cashing in from the moment that band breaks to the point at which their original contract, tipped in the label's favour, expires.

But such deals are, of course, very risky. EMI can no longer afford to employ the traditional strategy of signing ten such deals on the hope one comes good, but most bands with enough buzz and existing fanbase to sufficiently reduce that risk will be getting offers from multiple labels, and are unlikely to opt for the EMI deal given the major's uncertain future.

Ironically, when Terra Firma bought EMI many of the firm's top execs (now all long gone) waxed lyrical about how private ownership - rather than being a public company trading on the London Stock Exchange - would ensure constant speculation about the firm's finances would stop. Actually, the reverse has turned out to be true - few people in the music industry really understand what fluctuations in share prices mean, but can very much get their head around the fact that doing business with a company saddled with a $4 billion debt is not without its risks.

Though, actually, there is probably one business plan that Leoni-Sceti could propose that might just work - albeit a controversial one - merge EMI with Warner. Combine the two companies' recording and publishing catalogues into one massive music rights agency, adopting the model of BMG's latest move into the music business. With regards new talent, focus on Warner UK's interesting approach to 360 degree style business partnerships with bands rather than traditional record deals. And, from EMI, take the distribution division - or Music Services as it is now known - the one bit of the flagging major to have enjoyed a renaissance since Terra Firma's big purchase. Regulator approval for a combined EMI/Warner permitting, that, ladies and gentlemen, could just work.