Investment firm Terra Firma manages to lose legal action over EMI

Music label giant Electric and Musical Industries, Ltd had been obtained in 2007. Their new owner, Terra Firma, made this purchase. Terra Firma sued Citibank after losing $2.5 billion in this expenditure. A jury has found, nevertheless, that Citibank did not defraud Terra Firma in the purchase of Electronic and Musical Industries, as was accused.

Terra Firma bought Electronic and Musical Industries

The British company Emi had been bought by Terra Firma in August 2007 for $6.8 billion. This had been all before the credit markets stopped in Oct 2007. Citigroup funded the purchase. Guy Hands is in charge of the Terra Firma fund. Since the purchase, billions have been lost in the business by him. Since 2 thirds of the funds are within the shrinking Electronic and Musical Industries, investors are pretty angry at him too.

A court docket case with Terra Firma and Citigroup together

Citigroup, which funded the Terra Firma purchase of EMI, has been on the defensive. Terra Firma claims that it was defrauded within the EMI purchase by Citigroup which led to the suit. It had been not a "bidding war" to get Electronic and Musical Industries. This is what Terra Firma had been led to believe. A jury unanimously found that Citigroup didn’t defraud Terra Firma within the buy.

Where EMI is headed

EMI is one of Britain's largest music labels. Musicians as diverse as Lilly Allen and the Rolling Stones have been or are on the EMI label. Spending had been stopped practically everywhere after Terra Firma and Guy hands took over in 2007. Those like the Rolling Stones left the label during this time. Despite the cost-cutting, however, Hands is claiming that EMI has cost him more than $8 billion. Emi and the Terra Firm may be removing Hands soon. Refinancing for EMI is "much less likely" to occur with Citigroup following the legal action. This might lead the musical industry giant to the hands of another. It might turn out to be bought again.

Data from

Business Week

businessweek.com/news/2010-11-04/citigroup-wins-trial-against-terra-firma-over-emi-sale.html