London-based music company EMI has been taken over by American financial services company Citigroup.

The struggling EMI’s debt had recently reached a total of $5.4billion, prompting a series of desparate attempts by Guy Hands, CIO of London’s Terra Firma Capital Partners, to retain control of the company he had invested $2.7billion in four years ago – attempts which included renting back catalogue rights to other major labels.

As a result of Citigroup’s acquisition, EMI’s debt has been slashed to $1.9billion and the company now has in excess of $480million of cash available. The bank also announced that they would retain the current management, led by CEO Roger Faxon. It is expected, however, that EMI will again change hands, with other major labels (such as Warner) showing interest.