Music group EMI warned it needs to raise more capital to pay off debts despite reporting a large reduction in annual losses.
Losses of £1.75 billion were improved with a pre-tax loss of £624 million up until the end of March 2010.
A rise in revenue of 5% to £1.65 billion is partly attributed to the release of the re-mastered Beatles back catalogue.
The company, whose artists include Kylie Minogue, George Michael and Queen, owe approximately £3 billion to US bank Citigroup.
More cash is needed to meet the banking convenants of its debt according to EMI.
“The directors recognise that existing forecasts indicate further significant shortfalls in respect of the covenant test periods to the end of March in each year until the facilities expire in 2014 and 2015″ EMI said.
The company added it required £27 million by the end of this year.
Roger Faxon, previously the boss of the EMI Music Publishing, was appointed as group-wide chief executive in June this year.
EMI said at the time that it hoped the change would enable the company to boost earnings for both its artists and songwriters.
Terra Firma bought EMI for £4 billion ($6.3 billion) when the last economic boom was at its peak but has since struggled to meet the terms of its loan agreement with Citigroup.
