EMI Group has been taken over by Citigroup, the bank who financed Terra Firma’s 2007 purchase of the music company for £4 billion. The bank seized 100% of the share capital and reduced EMI’s debt by 65% from £3.4 billion to £1.2 billion. Following this development, EMI has more than £300 million cash available.
Last week MusicRow reported the latest developments in this ongoing story about Terra Firma boss Guy Hands.
According to the press release:
“Immediately following the transfer in ownership, Citi effected a debt-for-equity swap to recapitalise EMI. The EMI Group continues under the same management.
EMI has achieved creative and commercial success over the last twelve months and will continue to pursue an ambitious growth strategy.
Roger Faxon, EMI’s chief executive, said: “The recapitalization of EMI by Citi is an extremely positive step for the company. It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity… We have a clear vision for the future, a strong and committed management team, and now the right capital and financial structure in place to deliver successful outcomes for artists and songwriters.”