According to UK daily newspaper the Independent, Citigroup has started talks with EMI's pension trustees regarding a £200m injection into the scheme.

After Citigroup took over EMI early last year it vowed to sell the label's recorded music and publishing divisions but still had to take on its pension liabilities.

In October 2010, while still owned by Guy Hands' Terra Firma, the EMI Group avoided being dealt with by the Pensions Regulator after agreeing a funding deal with its pension trustees to address its pensions deficit. An agreement to fund the scheme with a cash injection of £197m over six years was made at the time.

According to the Independent, EMI's most recent results show a deficit of £125m.

The trustees are said to be currently running a valuation of the fund's assets and liabilities – which are valued at nearly £1bn and more than £1.1bn respectively – to honour the deal.

The EMI pension scheme has only 269 active members and was closed to new joiners in November 2005.

Citigroup declined to comment up until now but has not denied the reports.

First published 16.01.2012