Hands’ Legal Setback
There are signs that Guy Hands’ ongoing legal battles against U.S. banker Citigroup aren’t going well.
He’s appealing a New York court ruling that the investment bank did not commit fraud when selling EMI to him in 2007, but his efforts to learn more about its 2011 seizure of the company have suffered a setback.
A London court has knocked back his bid to get more details of the reasons why Citi took control of the company.
It threw out Hands’ application demanding that PwC, the music group’s administrators, and other advisers disclose valuation documents.
He began this second legal fight in September, just as Citi drew closer to hiving off the troubled English music company, claiming that he wants sounder legal reason for the takeover.
PwC, which was the administrator for EMI holding company Maltby Investments Ltd., said it was because Maltby defaulted on the £2.2 billion it still owed on the loans it needed to buy EMI.
Hands says the company had always made sure it was up to date on its interest payments and stayed within its loan covenants.
His appeal against the court’s decision that Citi didn’t defraud him when first selling him the company should be heard before the end of March.