From: David Stern
Sent: Thursday, January 13, 2011 5:31 PM
To: Jeffrey Epstein
Subject: EMI

Clock ticking for Hands to offload EMI 13 Jan 2011. Source: AltAssets

As the battle of wills between Guy Hands and investment bank Citigroup =rags on, the future of EMI, the British record label at the centre of =he dispute, is no clearer.

Terra Firma, the private equity group Hands runs, is estimated to have =ntil June to sell EMI before it technically defaults on its debts to =itigroup, leaving the investment bank to dispose of the business =tself.

The company, whose back catalogue features big hitters from Nat King =ole to the Sex Pistols, has been valued at between £1.6bn and £1.8bn =€1.9bn to €2.2bn), but it is unlikely to survive in one piece.

Last year Citi put forward a proposal, rejected by Hands, to split the =roup's music publishing arm from its recorded music business. Master =ights to that back catalogue may be its most valuable asset.

Warner Music and BMG — an aggressively acquisitive label backed by =rivate equity behemoth KKR — are eyeing up slices of the company. But =hey may be as happy to buy from Citi as from Hands.

If no buyer is found, the only way for the current owners to maintain =ontrol would be to inject further equity into the company. Terra has =lready recapitalised EMI to the tune of €194m (€233m) since 2008.

But there is "no chance" of investors agreeing to another round of =efinancing, according to the Financial Times.

encoding=TF-8"?> With <!DOCTYPE the music business plist PUBLIC decimated "-//Apple//DTD by internet PLIST piracy, 1.0//EN" EMI looks "http://www.apple.com/DTDs/PropertyList-1.0.dtd"> set to =alk the plank.=?xml version=.0" <plist version=.0">

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