THE EMI SAGA IN 10 BEATLES SONGS

The battle between Terra Firma, the private-equity firm founded by Guy Hands, and CitigroupC +0.06% over the private equity firm’s ill-fated investment in EMI is set to be reignited in court by 2016.

Funds managed by Terra Firma are claiming at least $3.61 billion (£2.24 billion) in damages amid new allegations of fraudulent misrepresentation, according to court documents seen by Private Equity News. The allegations are denied by Citigroup.

To refresh your memory, here is a timeline of the EMI saga, in 10 Beatles songs:

August 2007: I Want to Hold Your Hand

Terra Firma buys EMI in deal worth £4.5 billion. Citigroup provides a £2.49 billion debt package.

October 2008: We Can Work It Out

Accounts are published showing a “very large loss” for the 12-month period to March 2008.

March 2009: Help!

Terra Firma writes down its investment by half and puts up an extra £28 million to help EMI avoid breaching covenants on the Citigroup loan. Terra Firma averts a restructuring after a better performance helped by re-releases of EMI’s most famous recordings – albums by The Beatles.

November 2009: Hello, Goodbye

Terra Firma sharply reduces its involvement in the company after Citigroup refuses to sanction a debt reduction, which would have seen the firm inject an extra £1 billion. It is understood that it leaves Terra Firma with little chance of making its money back.

December 2009: Can’t Buy Me Love

Terra Firma launches a legal claim against Citigroup accusing the bank of driving up EMI’s price by misrepresenting that there was another interested bidder. Citigroup wins the trial in 2010 after a jury finds the bank is not liable for fraud.

February 2010: We Can Work It Out

EMI plans to combine EMI Recorded Music and EMI Music Publishing and talks to potential buyers for Abbey Road Studios. Terra Firma raises £105 million to stave off a foreclosure on EMI.

February 2011: She’s Leaving Home

Citigroup seizes full control of EMI, slashing company’s debt to £1.2 billion from £3.4 billion. Nine months later EMI is split up, with a SonySNE -1.01%-led consortium acquiring the music publishing business for $2.2 billion and Universal acquiring the recorded music business for $1.9 billion. Terra Firma files in the U.S. for leave to appeal technical aspects of how the EMI trial was conducted and not the verdict itself.

January 2013: Let It Be

Mr. Hands says in an interview that: “The time for apologising is over, the time for moving on has started.”

May 2013: I Should Have Known Better

Terra Firma wins the right to a new trial over claims that it was deceived by Citigroup into bidding for EMI. The U.S. Second Circuit Court of Appeals throws out verdict from 2010 trial, saying the judge in the case erred in his instructions to the jury.

March 2014: Come Together

Terra Firma and Citigroup agree to resolve disputes in one set of proceedings by transferring the New York claim to England.