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Bank Takes Over Control of EMI

The other shoe finally hit the floor Tuesday (2/1) when Citigroup effectively took control of EMI Records.  The nearly inevitable new chapter for the label that the Beatles and Pink Floyd recorded under came as the company continued to struggle to reign-in debt in the aftermath of a 2007 buyout for close to $7 billion, more than half of which was reportedly financed in loans Citigroup advanced to Terra Firma, the private equity firm run by Guy Hands, so that it could acquire the label in 2007.  A recent attempt by Hands to get more breathing room by convincing a jury that a Citigroup banker misrepresented facts related to EMI's value failed.  Whose hands EMI falls into next is anybody's guess, but it's a safe bet it will be had for a fraction of the price Terra Firma handed over four years ago.
NYTimes.com

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