Citigroup Is EMI Music’s Latest Foster Parent

The heavily indebted music company EMI just moved in with Citigroup, its latest foster parent. Citigroup now owns EMI as part of an extended restructuring program. From DealBook:

The bank’s takeover of the record company had been widely expected, reports Ben Sisario on Media Decoder, as EMI has been struggling under a heavy debt load as a result of its $6.7 billion buyout in 2007 and amid a decline in music sales.

The buyout, by the British financier Guy Hands’s private equity firm Terra Firm, came at the height of the buyout boom. Citigroup provided some $4.3 billion in loans to finance the deal.

In a lawsuit, Mr. Hands sought to prove that a Citigroup banker had misled him during the auction of EMI. A federal jury in Manhattan sided with Citigroup. The court defeat made relinquishing EMI seem nearly inevitable.

Up next: an EMI sale to a music or media company. How about it, Apple?

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Written by Drea Knufken

Drea Knufken

Currently, I create and execute content- and PR strategies for clients, including thought leadership and messaging. I also ghostwrite and produce press releases, white papers, case studies and other collateral.