Guy Hands, Chairman of Terra Firma, previously made allegations of fraud against the bank over Terra Firma’s acquisition of music group EMI in 2007, where Citibank acted as adviser to EMI.
However it was announced by Citigroup on 10th June that Terra Firma had dismissed court proceedings and agreed to pay Citi’s costs after Guy admitted that he lacked the level of evidence required for a fraud claim.
He said: “These claims were brought in good faith.
“However, it has become evident that our documentation of the fast-moving and complex events, and memories of these events after nine years, are no longer sufficient to meet the high demands of proof required for a fraud claim in court.
“The matter is now closed.”
In a statement, Citi said: “We have always maintained that the allegations made by Terra Firma were entirely baseless and that Citi, specifically David Wormsley, Michael Klein and Chad Leat, acted at all times with absolute honesty and professional integrity throughout the EMI transaction.
“We are very pleased that Terra Firma has unreservedly withdrawn the allegations, agreed to the dismissal of the proceedings and will pay Citi's costs in relation to this matter.”
Founded in 1994, Terra Firma has so far invested over £13bn in 33 businesses.
Guy added: “Terra Firma is looking to the future. We have an exciting portfolio of companies, a talented and experienced team, supportive and loyal investors and €1bn of capital to invest.”
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