Guy Hands accused of attempted Citi 'shakedown'

Pointing Finger

The Terra Firma tycoon Guy Hands has been accused of attempting to run a “shakedown” against Citigroup and its former chief executive, Chuck Prince, in his attempt to recover massive losses from his disastrous acquisition of EMI.

The Daily Telegraph reports that on the second day of a High Court trial in which Hands is seeking damages of more than £1.5bn from Citi, he said his personal losses from the EMI debacle were $228m.

Terra Firma, the private equity firm operated by Hands from his base in Guernsey, bought EMI in the run up to the credit crunch in 2007 in a $6.1bn deal. Citi acted as both adviser to the record label and financier to the bid, providing $3.6bn in loans.

When EMI breached covenants on the debt in the recession that followed, the investment bank took control in a pre-pack administration in 2011.

Mark Howard QC, representing the investment bank, cross examined Hands over proceedings he “surreptitiously” issued against Citi in a district court in Manchester in 2013.

Howard said: “You, Mr Hands, are prepared to lie and put forward false claims against individuals and against Citi in order to further your own ends and your own interests.

“This is what one would call, if one were out on the street, a shakedown.”

To access the complete Daily Telegraph article hit the link below:

Guy Hands accused of attempted 'shakedown' of Citi over EMI failure

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