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?