Coldplay's record label to be sold on after creditor takes control
EMI has been taken over by US bank Citigroup. The bank had been the major record label's creditor as it racked up debts of £3.4 billion. Now, after taking ownership of the company, the bank has reduced the debt to £1.2 billion, reports BBC News. Coldplay, Lily Allen, Pete Doherty, Katy Perry, Robbie Williams and Gorillaz are among the artists signed to EMI.
Citigroup plans to sell on the label, which will continue under its current management. In 2007 EMI was taken over by the Terra Firma company, with Citigroup loaning the money to allow its chairman, Guy Hands, to spearhead the takeover. Citigroup's acquisition of EMI comes just ahead of the company's next test of its performance against banking covenant targets that EMI wasn't expected to achieve.
"The recapitalization of EMI by Citi is an extremely positive step for the company," said Roger Faxon, EMI's chief executive. "It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity. With that solid footing, we are confident in our ability to drive our business forward," he added.
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