The Day The Music Seized: EMI Snatched By Citigroup
Citigroup "seized the beleaguered EMI Group" from Guy Hands' hands on Tuesday putting to rest one of the industry's "most tarnished misadventures," reports The Wrap, signaling the possible auction of the No. 4 record colossus.
Hands' Terra Firma private equity firm turned over ownership of EMI -- home of The Beatles, Coldplay, Katy Perry, thousands of others -- to the U.S. bank, and Citigroup immediately restructured its debt wiping out 65 percent of $3.55 billion, notes The Wrap. EMI, now owes $1.94 billion in debt of the former $5.48 billion it was carrying. According to Citigroup, it has $483.7 million of cash available.
Looking at the move in a positive light, EMI’s chief executive aid Roger Faxon remarked in a statement:
"It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity...With that solid footing, we are confident in our ability to drive our business forward. We have already made great progress in meeting the challenges facing our industry. The closer alliance between our two operating divisions is already delivering impressive results on behalf of the creative talent we are privileged to represent. 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."