Does Guy Hands Want EMI Back?
September 8, 2011 at 5:27 AM (PT)
In FEBRUARY (NET NEWS 2/1), CITIGROUP seized control of EMI GROUP from GUY HANDS, acquiring 100% of the share capital on a restructuring that saw the company's debt load cut to £1.2 billion from £3.4 billion. The move came as no surprise to those following the rocky road that which began with HANDS' £4 billion buyout of EMI in 2007 through his private equity firm TERRA FIRMA, financed by CITIGROUP.
But it appears HANDS is prepared to fight CITIGROUP for his old company.
THE NEW YORK POST reports HANDS, "wants CITIGROUP to explain its reasoning for snatching the record label away from his company earlier this year. HANDS asked a British court for access to CITI documents that would spell out why the label was seized and also detail its valuation of the business."
The report noyes, "Even though EMI hadn’t violated the terms of its loan, CITI argued that much of the value already had been erased. It was widely believed that TERRA FIRMA would not meet its debt obligations when CITI took control of EMI."