X

Terra Firma Loses To Citi, Could Mean End Of EMI

image from www2.jpscotland.co.uk (UPDATED) A NYC has jury ruled today that a Citigroup banker did not lie to Guys Hands and Terra Firma about a rival bid. The loss could force Terra Firma to relinquish control of EMI to Citi who both brokered the purchase and is the main lender providing $4.23 billion in financing

The jurors deliberated for just four hours over two days before reaching their verdict after a contentious three week trial. Citi has already written off $1.63 billion of the debt saying that EMI is only worth just under $3 billion now.

Throughout the trial, CitiGroup lawyers contend that Hands had simply made a bad deal that he (and they) now had to live with.  "Guy Hands couldn’t fight technology,” said a Citi attorney early this week. “No one’s buying records anymore.”

If Terra Firma is unable to meet its debt obligations and relinquishes control of EMI, most observers believe that the company would be split up and sold.  Several parties including WMG (for the record division) and BMG (publishing) have publicly expressed interest in the past.


Leave a Reply

Message
Your Name *
Your Email *
Website

Contact us

ARE YOU IN NEED OF A QUALIFIED
POST PRODUCTION PARTNER?

JUST WANT TO SAY HELLO?

Send us a message using the contact form. We never pass up an opportunity to talk shop.