Lawyers for private equity group Terra Firma have asked a US appeals court to order a new trial in its client’s legal squabble with US bank Citigroup over it’s 2007 purchase of EMI. The $6.3 billion deal eventually went sour with Citi taking back control of EMI and selling on in two parts to Sony Music and Universal leaving Terra Firma with a massive loss. Citi not only provided loan funding for Terra Firma’s acquisition of EMI acquisition, but then advised on it too, and it was that advice over which Terra Firma boss Guy Hands subsequently sued the bank. And lost.
Meanwhile BMG, Warners and a consortium headed up by Simon Fuller including a major telecoms company all appear to be in the frame to buy divested EMI assets including the Parlophone label. Other assets which must be divested under EC approvals include the Chrysalis, Ensign and Mute labels and the EMI and Virgin Classics labels, its share in Now That’s What I Call Music business as well as Universal’s Sanctuary, King Island and Co-op Music labels.