Terra Firms Asks LPs To Cover EMI Shortfall

LONDON (Reuters) – Guy Hands is to ask investors in his private equity group Terra Firma for 100 million pounds ($159.9 million) to cover a shortfall, saying its music company EMI will be unable to meet its loans from Citigroup this year, the Financial Times reported on Thursday.

A spokesman for Terra Firma [TERA.UL] declined comment on the report. Spokesmen for EMI [LNDONE.UL] could not be reached.

Terra Firma bought EMI in 2007.

The British private equity group last month launched a lawsuit against Citigroup (C.N), demanding billions of dollars in damages relating to its 2007 buyout of EMI in which Citigroup acted as adviser for EMI and sole financier to Terra Firma. Terra Firma accuses Citigroup of fraud. The U.S. bank has said the lawsuit is “without merit.”