American fund sets sights on troubled HMV

Kasmira Jefford
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APOLLO Global Management, the American investment firm with almost £70bn of assets under management, is plotting to take control of HMV after buying a chunk of the retailer’s debts.

The vulture fund has snapped up more than £20m of the struggling company’s senior debt from Allied Irish Banks, over 10 per cent of HMV’s outstanding loans, according to reports this weekend.

The move comes after HMV announced last week that it was likely to breach its banking agreements in January.

Chief executive Trevor Moore said the group was in “constructive discussions” with its eight lending banks. However, by buying up debt, Apollo could tip the balance in talks by taking control of HMV if it is unable to make its debt payments.

Apollo, HMV and Allied Irish declined to comment.