Be Excellent To Each Other

The loss follows the take-over of EMI by private equity tycoon Guy Hands three years ago, said Kleinman.

"He paid about £3bn for EMI and since then it's struggled particularly because of the conditions afflicting the music industry but also he has struggled to come to terms with the company's vast cost base," Kleinman said.

A report in the FT this morning claimed Mr Hands will have to ask investors in his Terra Firma private equity group to inject another £100m so it can meet the terms of Citigroup's loans from earlier this year, largely because of EMI's failings.

"Guy Hands is taking legal action against Citigroup alleging he was misled during the sale process, so we have a pretty explosive situation here and then this loss will really shake those taking an interest in the company's future," said Kleinman.