EMI Bankruptcy?
EMI Bankruptcy?
Just a few days ago I read in USA Today Business Section that EMI has filed for Bankruptcy! Will this affect any of Matt's Musical Library or have you already received all of EMI's Catalog of Matt's Music??
Henry H Puccinelli
Re: EMI Bankruptcy?
It remains to be seen what will happen with EMI.
The problem is that it is actually a very healthy profitable business if you ignore their debts.
The Debts spring from when it's present owners 'Terra Firma' bought them for far more than they were worth.
Since then Terra Firma has slimmed down EMI's operations but has failled to make up the money it owes to the bank. This is complicated further by the law suit EMI raged against the bank (Citibank) as the bank failed to tell Terra Firma that Warner Brothers has pulled out of the bidding war and this helped push the price up.
EMI has subsiquently lost it's lawsuit.
Nobody knows quite what is going to happen to EMI now - Needless to say nobody is suddenly going to take all the master tapes and put them in a skip! EMI is the oldest surviving label in the world and was set up by the inventor of the flat disc record - Emile Berliner - so it has a heritage of about 115 years which is it's biggest asset - It's back catalogue!
There has been talk about whoever rescues the company may only want it's catalogue not it's current artists, however it has been pointed out that today's new artists are tomorrows back catalogue so I think sense wil prevail and EMI records as a whole will stay together - However there is always a possiblity that Capitol my be bought separately - which will split Matt's catalogue in half!
Abbey Road is currently in charge of all of EMI's tape transfers - What will happen if Abbey Road is sold off is also unknown.
Just be warned. At present we have a very good working relationship with EMI, However if it get's taken over and there is a major shake up in the staff then we may no longer have any influence in what gets released and all projected projects could well disappear.
Interesting, but worrying times.
On your point - have you already received Matt's catalogue. In a word NO. All EMI recordings and mastertapes are the property of EMI records not the estate.
The problem is that it is actually a very healthy profitable business if you ignore their debts.
The Debts spring from when it's present owners 'Terra Firma' bought them for far more than they were worth.
Since then Terra Firma has slimmed down EMI's operations but has failled to make up the money it owes to the bank. This is complicated further by the law suit EMI raged against the bank (Citibank) as the bank failed to tell Terra Firma that Warner Brothers has pulled out of the bidding war and this helped push the price up.
EMI has subsiquently lost it's lawsuit.
Nobody knows quite what is going to happen to EMI now - Needless to say nobody is suddenly going to take all the master tapes and put them in a skip! EMI is the oldest surviving label in the world and was set up by the inventor of the flat disc record - Emile Berliner - so it has a heritage of about 115 years which is it's biggest asset - It's back catalogue!
There has been talk about whoever rescues the company may only want it's catalogue not it's current artists, however it has been pointed out that today's new artists are tomorrows back catalogue so I think sense wil prevail and EMI records as a whole will stay together - However there is always a possiblity that Capitol my be bought separately - which will split Matt's catalogue in half!
Abbey Road is currently in charge of all of EMI's tape transfers - What will happen if Abbey Road is sold off is also unknown.
Just be warned. At present we have a very good working relationship with EMI, However if it get's taken over and there is a major shake up in the staff then we may no longer have any influence in what gets released and all projected projects could well disappear.
Interesting, but worrying times.
On your point - have you already received Matt's catalogue. In a word NO. All EMI recordings and mastertapes are the property of EMI records not the estate.
Re: EMI Bankruptcy?
Thanks for the info Richard. Very interesting.
I saw this article in the Express on the 2nd Feb..
"CITI SEIZES EMI and looks for buyer
Citigroup yesterday seized control of EMI, paving the way for an eventual sale or break up of the music group, home to Kylie Minogue, Robbie Williams and Coldplay.
The U.S. bank took over the company from private equity owner Guy Hands after an investment vehicle set up by his company Terra Firma defaulted on its loans to Citi.
There has been talk that Citi has been in touch with potential buyers, including media giants Warner Music, BMG and even X Factor mogul Simon Cowell whose business is backed by Sony. Hands himself might look to bid and is said to have held talks with a Canadian pension firm, CPP Investment Board.
However, insiders said Citi would not be rushed into a sale as it would want the best price. EMI should fetch at least £1.8billion.
The bank has written off £2.2billion in loans through a debt for equity swap, leaving EMI with £1.2billion in debt and £300million in cash.
EMI's management will remain with the business and welcomed the move.
"The recapitalisation of EMI by Citi is an extremely positive step for the company" said chief executive Roger Faxon. "It has given us the most solid balance sheets in the industry. With that solid footing we are confident of driving the business forward."
Terra Firma's investment vehicle Maltby Investments has been placed into administration by accountants PriceWaterhouseCoopers, which sold EMI on to Citi.
The private equity group bought EMI at the height of the debt bubble with £4billion borrowed from Citi. Since then, Hands has clashed with the bank in court, claiming one of its top investment bankers misled him during the takeover. He lost the case.
It had been expected Citi would gain control of EMI but it happened much sooner than anticpated.
Faxon's team have several recent successes, such as a deal with Apple to sell The Beatles on iTunes and re-signing Pink Floyd."
I'm not sure of what this all means Richard, but I understand more now from typing it out! I expect you know all this anyway as some of it seems a more complicated version of what you have written above.
Just thought it might be of some interest.
I saw this article in the Express on the 2nd Feb..
"CITI SEIZES EMI and looks for buyer
Citigroup yesterday seized control of EMI, paving the way for an eventual sale or break up of the music group, home to Kylie Minogue, Robbie Williams and Coldplay.
The U.S. bank took over the company from private equity owner Guy Hands after an investment vehicle set up by his company Terra Firma defaulted on its loans to Citi.
There has been talk that Citi has been in touch with potential buyers, including media giants Warner Music, BMG and even X Factor mogul Simon Cowell whose business is backed by Sony. Hands himself might look to bid and is said to have held talks with a Canadian pension firm, CPP Investment Board.
However, insiders said Citi would not be rushed into a sale as it would want the best price. EMI should fetch at least £1.8billion.
The bank has written off £2.2billion in loans through a debt for equity swap, leaving EMI with £1.2billion in debt and £300million in cash.
EMI's management will remain with the business and welcomed the move.
"The recapitalisation of EMI by Citi is an extremely positive step for the company" said chief executive Roger Faxon. "It has given us the most solid balance sheets in the industry. With that solid footing we are confident of driving the business forward."
Terra Firma's investment vehicle Maltby Investments has been placed into administration by accountants PriceWaterhouseCoopers, which sold EMI on to Citi.
The private equity group bought EMI at the height of the debt bubble with £4billion borrowed from Citi. Since then, Hands has clashed with the bank in court, claiming one of its top investment bankers misled him during the takeover. He lost the case.
It had been expected Citi would gain control of EMI but it happened much sooner than anticpated.
Faxon's team have several recent successes, such as a deal with Apple to sell The Beatles on iTunes and re-signing Pink Floyd."
I'm not sure of what this all means Richard, but I understand more now from typing it out! I expect you know all this anyway as some of it seems a more complicated version of what you have written above.
Just thought it might be of some interest.
Re: EMI Bankruptcy?
Our best hope is that it continues to run it's catalogue business with the same staff and that it does not sell capitol separately.
Of course it also puts this forum in jeopardy as it's hosted by EMI!
Richard
Of course it also puts this forum in jeopardy as it's hosted by EMI!
Richard
Re: EMI Bankruptcy?
"My Tears Will Fall Now That You're Gone,
I Can't Help But Cry, But I Must Go On"
I Can't Help But Cry, But I Must Go On"
Re: EMI Bankruptcy?
I can only echo that sentiment!
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maureen & harry
- Posts: 1094
- Joined: Wed May 28, 2008 11:27 am
Re: EMI Bankruptcy?
There is a piece in today's Daily Express which states that Clive Calder the British Music Mogul whose Zomba records made stars of Britney Spears and Black Street Boys could be lured out to lead a Private Equity bid for EMI. He is a South African billionaire who built up Zomba into one of the leading Independent labels before selling it for 1.2 billion 9 years ago.
The EMI business could fetch about two billion pounds and is likely to be sold or broken up this year.
We can only hope that there will be a satisfactory outcome for all concerned and especially for the sake of the music of Matt and the forum which the fans derive so much pleasure from.
The EMI business could fetch about two billion pounds and is likely to be sold or broken up this year.
We can only hope that there will be a satisfactory outcome for all concerned and especially for the sake of the music of Matt and the forum which the fans derive so much pleasure from.
Re: EMI Bankruptcy?
Just so you guys know. EMI is NOT bankrupt - But it IS being sold.
Richard
Richard