EMI trustees reach six-year funding agreement with sponsor

The more than £900m scheme, which has a disputed deficit of between £115m and £217, according to recent accounts, will receive £197m over six years, plus a £16m upfront payment.

The Pensions Regulator has accepted the terms of the plan, which will now no longer have to go before the watchdog’s Determinations Panel, to thrash the matter out.

EMI Group pension trustee chairman Clive Gilchrist was appointed by the regulator in August 2009, when his predecessor, Ian Smellie, failed to come to an arrangement with EMI owners Terra Firma.

He said: “We will continue to work closely with the company in the coming years to ensure the best possible outcome for our members.”

And Roger Faxon, chief executive of EMI, added: “We have been able to work with the trustee board to resolve all outstanding matters and reach this amicable agreement, which is aimed at reassuring members of the Fund of the security of their pensions.”

In March Terra Firma’s holding company for EMI, Maltby Capital, published its 2009/2010 annual review, which stated: “The directors have concluded that the combination of these circumstances represents a material uncertainty that may cast significant doubt upon the ability of the group to continue as a going concern.

"The group may therefore be unable to continue realising its assets and discharging its liabilities in the normal course of business.

"The financial statements do not include any adjustments that would result if the group were unable to continue as a going concern due to a withdrawal of the group’s banking facilities by the group’s lender."

It continues: “EMI Group has been in discussions with the Trustees of the EMI Group Pension Fund regarding the cash contributions under the scheme funding regime.

“The group’s current lending arrangements require the deficit existing at the date of acquisition of EMI Group to be met by additional equity investment.”

The same document claimed EMI – which has artists including Katie Perry, Coldplay and Iron Maiden on its books – made losses £512m during the period.