Saturday, 1 June 2013
Terra Firma gets a second chance in EMI claim
Guy Hand's Terra Firma has been given a second chance at reclaiming an estimated $4 billion in damages from Citi-Group after a New York appeals court ruled that the jury in the case brought by Terma Firma after their disastrous purchase of EMI had been wrongly directed by the Judge. Terma Firma have alleged that they were tricked into the purchase of the music group after Citi had told Hands that Cerberus were also bidding for EMI, artificially pushing the price up as there was no such offer - made more complicated as Citi were advising both EMI and Terra Firma. The appeals coirt said the judge erred and should have directed that the fraud allegations should have been assessed under English law and that Citi would have needed to rebut Terra Firma's claims. Terra Firma lost an estimated £1.75 billion on the purchase of EMI which was subsequently reclaimed by Citi and its recorded music division sold principally to Universal and Warners, and its music publishing division acquired by a Sony led consortium.