Terra Firma Could Default on EMI Loan
News sites including London’s Sunday Times, are buzzing today (12/13) with reports that EMI Music Group may soon end up in the hands of Citigroup. The bank funded a more than $4 billion loan for Guy Hands’ private equity firm Terra Firma to purchase the record company in 2007.
Sources told the New York Post that Terra Firma investors refuse to put any more money into the record label. Earlier this year Hands convinced them to plow $156 million into EMI to keep it from defaulting on the Citigroup loan.
Last month, Hands and Citigroup met in the courtroom, and Hands lost the lawsuit in which he claimed Citi convinced him to overpay for EMI.
Among EMI’s Nashville labels are EMI Christian Music Group and Capitol Records Nashville.
Sarah Skates has been a writer and editor in the music business since 2004. She is a longtime contributor to MusicRow.
Latest posts by Sarah Skates (see all)
Ok, NOW I can buy Capital records!