Guy Hands loses court battle on EMI
The jury of eight delivered their verdict in a Manhattan courtroom at 2 p.m. After almost four hours of deliberations and three weeks of trial bruises. The two men, who had shot and go to the Opera, quickly left the Court.
Decision can loosen the handshake m. on EMI, home of the Beatles and Van Morrison, that his company capital Terra Firma purchased just before the financial crisis in May 2007 with a loan of. 7bn £ 2 Citi.Investisseurs, including the Canada pension plan are proposing to invest 200 million from £ by EMI to ensure that it does by default on loans.
Mr. hands had sought $represents (£ 4 United) of damages and interests of the American Bank after claiming Mr. Wormsley deceived him paying too much for the label of musique.Plus specifically, Mr. hands testified that Mr. Wormsley told in three of the telephone conversations on the weekend prior to the date limit of 21 May this American company that Cerberus for submission. Terra Firma offered p 265, control winning label music that Mr. hands eyes first more than 15 years ago, but was now faced with a dramatic record sales decline.
"It was not solid evidence," said Dennis Posillico, one of the jury, said outside the Court. ""They were just calls.
The combination was filed in December 2009, after months of negotiations between Terra Firma and Citi on restructuring now £ 3 debt pile EMI to nothing.The verdict comes as a relief to the banks that gave billion to buyers when the debt was good market and private investors from Terra Firma a way to get the most from £ billion spent on EMI.
Citi, which has always denied the allegations, has welcomed the verdict, describing Terra Firma claims such as "nothing more than an unwise to obtain leverage attempt" in pourparlers.Terra Firma said he was disappointed and may lodge an appeal against the decision.The prosecution has always been a bet for Mr. hands. ""To continue your banker is something you would like very, very last resort," he told the Court.
If Terra Firma default on loans, Citi will have the right to take control of one of the most cherished in the history of recorded music labels.
CITI has already written on the loan, was found be troubled by the Bank, shortly after the Terra Firma completed the agreement early August 2007 by issuers $.
Mr. hands said the Court that he would have paid much less if he did not believe that he had to bid at a certain price 21 mai.EMI, with main offices in London and New York, is now a value 1 £ 8bn, according to Mr. hands.
EMI Director Roger Faxon Thursday aimed at providing guarantees to employees and the EMI artists verdict does not change its objective of "delivering positive results". operations label improved their performance in the last fiscal year, despite losing artists such as Radiohead and the Rolling Stones since Terra Firma has supported.
Force legal test has seen a show by two lawyers - Ted Wells for Citi and David Boies to Terra Firma - judge Jed Rakoff described as equal with everything that he had vu.M.Wells described Mr. hands as someone trying to blame when he discovered that his "magic sauce" worked on EMI.Les 51 years estimated that "he could beat technology and get purchase records new children", but failed, said Mr. Wells.
According to Mr. Boies, Citi was fairness he had buffeted side by the Board of EMI, who has long been the Counsellor head - and was hungry for fees, M. Wormsley used its close relationship with Mr. hands for that Terra Firma paid £ 4 5.3 for EMI on the fateful day in May.
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