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Are things coming unglued at EMI / Terra Firma? – p2pnet wondered in 2007.

Now, “Citigroup Inc. rejected a request from Terra Firma Capital Partners Ltd. to reduce EMI Group Ltd.’s debt by 40 percent in return for a 1 billion-pound ($1.7 billion) cash injection, two people familiar with the talks said,” says Bloomberg News, going on:

“Guy Hands’s (right) private equity firm offered to provide the extra money if Citigroup agreed to reduce the record label’s 2.5 billion-pound debt by a similar amount, said the people, who declined to be named because the talks are private. Citigroup spurned the offer because it would have forced it to write off some of the debt just as EMI’s profit rises, one person said.”

And that’s left EMI “to be run by its own executives, although Hands-appointed non-executives like Lord Birt and former Northern Foods chief executive Pat O’Driscoll remain in place,” says the London Evening Standard, adding:

“Since the takeover, EMI has suffered along with its rivals from the downturn in the music industry and the growth of online piracy.

“It has also been hit by feuding with a string of stars unwilling to be managed by ’suits’, with Joss Stone the latest to hit out at her own recording label.”

So, have things finally come unglued at EMI / Terra Firma?

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