Lawsuit between Emi and Citigroup finished

Music label giant Electric and Musical Industries, Ltd was purchased in 2007. Their new owner, Terra Firma, made this purchase. Terra Firma sued Citibank after losing $2.5 billion in this investment. Terra Firma states that Citigroup defrauded Terra Firma in the buy of EMI. Source for this article – Investment firm Terra Firma loses lawsuit over EMI by Personal Money Store.

Terra Firma now is the owner of EMI

In August 2007, investment company Terra Firma made a $6.8 billion obtain of British business Emi. This had been all before the credit markets stopped in Oct 2007. Citigroup funded the purchase. Since that purchase, Guy Hands, who controls the Terra Firma fund, has lost billions within the business. He has additionally been the target of frustrated investors who aren’t happy with the fact two-thirds of the fund is tied up within the quickly shrinking EMI.

Citigroup and Terra Firma in the courtroom

EMI was only purchased with the funding Citigroup gave to Terra Firma. Citigroup is defending itself. Terra Firma sued Citigroup, claiming, among other things, the business defrauded Terra Firma within the EMI obtain. Terra Firma apparently believed that it had been in a “bidding war” for EMI, when it was not. Citigroup did not defraud the Terra Firma buy which had been decided by a unanimous jury.

Where EMI is headed

Britain has many music labels, EMI of which is one of the largest. The EMI label either has or had musicians like Lilly Allen and also the Rolling Stones on it. Spending had been stopped practically everywhere after Terra Firma and Guy hands took over in 2007. This led to large acts leaving the label. The Rolling Stones had been one of these. The cutting of costs didn't help much, Hands said. This is because $8 billion had been still spent on EMI. Hands may be losing his job soon. This will come from EMI and Terra Firma. Citigroup has said that, because of the suit, the business is “much less likely” to be willing to discuss refinancing for Emi. This could leave the musical industry giant ripe for takeover or purchase by yet another business.

Articles cited

Business Week

businessweek.com/news/2010-11-04/citigroup-wins-trial-against-terra-firma-over-emi-sale.html