New York – Major record label EMI’s parent company Terra
Firma has lost its legal dispute with Citigroup, in which it had alleged the bank
misled it into paying too much to acquire the label, The Wall Street Journal
reported. Citi was found not guilty of fraud in a federal court in New York,
after Terra Firma founder Guy Hands had alleged he was misled by Citi about
competing bids for EMI.
"The jury’s verdict makes clear that Terra Firma’s
irresponsible accusations of fraud were nothing more than a misguided attempt
to gain leverage in debt restructuring negotiations," a Citigroup
spokeswoman told The Journal.
Since Terra Firma’s $6.3 billion acquisition of
EMI in 2007, the label has carried a heavy debt and Terra Firma has struggled
to meet loan repayments to Citigroup.
(DMW previous coverage)