EMI TO RECORD NEW CUTS

Chief executive Elio Leoni-Sceti is said to be considering slashing the group’s budget and trimming its roster of artists.

EMI, which last week posted annual losses of £1.7billion, is seeking £120million from its owner, private equity company Terra Firma, which in turn must convince its backers to shell out the money. EMI, which counts pop stars Katy Perry and Kylie Minogue among its artists, could default on its debts and ownership would pass to US bank Citigroup.

Terra Firma, headed by Guy Hands, paid £4.2billion for EMI in 2007 but has launched legal action against Citi claiming it was misled over the sale, allegations the US bank denies.

A US judge will rule on Citi’s plea to have the case heard in London, while Terra Firma wants the hearing to be in New York.