Terra Firma Reports Loss, Writes Off Half of EMI Debt
March 3, 2009 at 1:47 PM (PT)
TERRA FIRMA CAPITAL, parent company of EMI, reported a $1.76 billion loss for 2008 after writing down two investments, including half of its stake in the music company, BLOOMBERG reports.
"If current market conditions were to continue, the funds may not recover the full value of their 2007 investments, and have therefore taken a provision for impairment," TERRA FIRMA said in its 2008 annual report. "We must be open and realistic about where the markets stand today."
TERRA FIRMA Founder GUY HANDS took a shot at the banks' lending practices for precipitating the current economic crunch. "We have to return to a banking system where there is a division between commercial lending banks, which take deposits and are effectively back-stopped by government, and investment banks, which take a variety of significant risks in pursuit of fees and quick gains," he wrote.