It’s the end of the road for British financier Guy Hands, who finally relinquished control of troubled music company EMI to lender Citigroup.

Citi, which won a legal feud with Hands’ Terra Firma over the disastrous EMI buyout in 2007, said today it had taken over Maltby Acquisitions Ltd., the investment vehicle Hands’ formed to control EMI.

As part of a debt-for-equity swap, Citi also slashed the record label’s debt by 65 percent, to $1.95 billion from $5.5 billion.

EMI said that its management team, led by CEO Roger Faxon, remains in place and that the firm will continue to pursue “an ambitious growth strategy.”

Citi Vice Chairman Stephen Volk described the change as a positive step for EMI’s employees and artists such Katy Perry.

“EMI is an iconic business and we are completely supportive of its management and its strategy,” Volk said in a statement.

It’s unclear how the move will affect rival Warner Music Group’s long-running ambition to buy EMI. Warner recently hired Goldman Sachs to explore strategic options.