EMI's pre-pack nets PwC more than £1.4m
EMI's new owner Citibank will pick up the tab, as administrators' expenses, costs and legal fees rack-up more than £1.4m
EMI’S PRE-PACK SALE arranged by PwC administrators, cost more than £1.4m, according to administrator proposals.
Pre-administration costs racked-up by PwC for time and expenses came in at £686,571.09, with legal expenses and fees drawing a further £789,022.39.
The administration bill will be paid by the music business’ new owner Citibank, and not out of assets from the company.
Tony Lomas and Peter Spratt, partners at PwC, were appointed administrators to the music business in February this year and sold it to its largest creditor Citibank.
EMI’s holding company Maltby Investment was acquired by private equity company Terra Firma in 2007 and, prior to the pre-pack, owed Citibank an estimated £3.3bn, although the music company was only valued at between £1.6bn and £2.3bn.
A pre-pack involves administrators arranging the sale of a business before it enters into an insolvency process and is sold immediately on their appointment.
EMI, which has signed artists such as Katy Perry (pictured), employs more than 2,000 people and operates in about 26 countries.