Court rejects Guy Hands’ plea for EMI data disclosure
A UK court has thrown out an application from Guy Hands demanding that EMI administrators PwC and other advisors disclose valuation documents pertaining to Citigroup’s seizure of the major.
Hands lodged an application with the High Court in September asking that PwC, Hawkpoint Partners and American Appraisal hand over valuation reports and written communication relating to valuations when Citigroup took control of EMI from Terra Firma in February, the Financial Times reports.
Hands’ barrister claimed that the joint administrators were not validly appointed and that the sale of EMI was undervalued or should not have taken place at all.
The submission to the court stated that the sale of EMI’s assets to Citi was “to crystallise a loss by Terra Firma of the entirety of its investment of about £1.85bn” and added that there were “serious concerns about the circumstances surrounding the sale by the joint administrators”.
In his ruling, the judge said that there was not “the slightest suggestion” that Citi had “effected sales at undervalue” which would be “entirely contrary to its commercial interests”.
He also said that it did not appear that Terra Firma needed “any of the valuations” to formulate their claims in so far as they centre on the value of EMI Group, adding “I do not consider that the disclosure of the valuations before proceedings have started will assist in achieving a fair disposal of the anticipated proceedings.”
Source: Music Week
