Reports in the NEW YORK POST andSUNDAY TIMES of LONDON say that GUY HANDS has been telling investors in his TERRA FIRMA to prepare for lender CITIGROUP to take over EMI.
HANDS reportedly is warning his backers that he may lose control of the label after losing a legal battle with CITIGROUP over TERRA FIRMA's claim that the lender had duped it into buying the label. TERRA FIRMA may retain a small percentage of the company but would cede operational control to CITIGROUP.
TERRA FIRMA bought the label in 2007 for $6.7 billion, taking out a loan from CITIGROUP to finance the deal. HANDS has had to get investors to put $156 million into EMI to avoid default, and faces another debt deadline in MARCH.
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