London – Private equity firm Terra Firma may have to cede control
of struggling major record label EMI to Citigroup — the bank that loaned it billions
to help buy the label — by year’s end, the New York Post reported.
The private
equity firm is now reportedly telling its backers it may have to give up EMI,
should the backers opt not to provide additional financing to help pay back
Citigroup’s loans.
Terra Firma recently lost a court battle with Citigroup,
where it had essentially alleged that the bank fraudulently goaded Terra into
buying EMI.
Since Terra Firma’s $6.7 billion acquisition of EMI in 2007, the
label under new leadership has undertaken a range of cost-cutting measures.
Should Citi eventually gain control of EMI, it’s likely to put the label up for
sale.
Related Links:
http://tinyurl.com/2a8cm32
(N.Y. Post)
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(Hypebot)
