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Terra Firma bring in business rescue expert to help with EMI
By CMU Editorial | Published on Friday 26 February 2010
According to the Financial Times, EMI owners Terra Firma have brought in a business expert who apparently helped sports chain JJB Sports avoid going bankrupt last year to assist in bid to stop Citigroup from taking ownership of the music firm. Terra Firma and its tax-dodging chief Guy Hands have fallen out with Citigroup big time, of course, and are in the process of suing the US bank. The fall out occurred after Citi refused to restructure (ie write off a chunk of) EMI’s debts to the bank.
Former Selfridges chief Peter Williams reportedly helped JJB Sports negotiate new terms with its bankers that stopped the retailer going under last year. Therefore his appointment to Maltby Investments, the Terra Firma owned company through which the equity types own EMI, might be a last minute bid by Terra Firma to restore good relations with Citigroup.
As previously reported, as it currently stands Terra Firma could lose control of EMI if they can’t raise $189 million to help the music company meet its loan commitments to Citigroup in May. The FT think that as well as dealing with Citigroup on the equity firm’s behalf, Williams will also scrutinise EMI Music chief Elio Leoni-Sceti’s previously reported business plan for turning round the fortunes of the major’s still flagging recorded music division.
