Hands Trying To Alleviate Citi's $4.9B Debt To EMI
May 29, 2008 at 5:37 AM (PT)
TERRA FIRMA boss GUY HANDS wants to help CITIGROUP rid itself of the $4.9 billion in EMI debt stuck on its books, reports TODAY's NEW YORK POST. In his quarterly address to shareholders, HANDS said that TERRA FIRMA remains on the hunt for takers to help reduce CITI's exposure to the loan.
"In all leveraged buyouts, your bank is your partner, and we have worked hard, and continue to work hard, to see if there are ways to help CITIGROUP syndicate or sell down this loan," he said, acknowledging publicly for the first time that "the [banking] crisis has been so deep that the debt package has had to remain on the balance sheet of the bank which provided it."
While CITI's struggles to off-load the EMI debt is a problem endemic to many financial institutions being rocked by the credit crunch, it is rare for a client to pitch in to help find a buyer.
His comments come as TERRA FIRMA is gearing up to start slashing expenses inside the music giant over the next month. "The restructuring is well under way with a reduction in annual run-rate costs of [$200 million] set to be achieved by JUNE," HANDS confirmed.
That sets the table for the long-anticipated layoff of 1,500 to 2,000 staffers worldwide. HANDS announced the move back in JANUARY, but has yet to pull the trigger on the bulk of the cuts.