Honey I shrunk the pension fund


There has been quite a lot of interest in the fate of my (and a lot of other people's) EMI pension following my post in October last year. Another letter arrived from the EMI Group Pension Trustees today which says:

'In mid December we reached an agreement in principle with EMI and its ultimate investor, Terra Firma, that the Fund would be granted a meaningful amount of watertight security, which would rank equally with the security granted by EMI to Citi, the bank that loaned Terra Firma the money to take over EMI.

Since that agreement, however, detailed discussions have revealed that the form of security offered does not rank equally with the bank's in certain important respects and is not sufficiently robust in its terms for the Trustee to be able to rely on it in circumstances where it would be needed to support the Fund. In the absence of meaningful and watertight security, and as EMI is not prepared to put forward an alternative funding package, the Trustee has concluded, with regret, that it has no option other than to inform the Pensions Regulator that there is no reasonable prospect of reaching agreement with EMI and Terra Firma on funding.'


As EMI's new owner Guy Hands, whose personal wealth with his wife is estimated to be £200m, said in a recent interview - 'We will fight to come up with a solution to the problems that face the entire recorded music industry'. It's a pity that the solution doesn't seem to include staff pensions.

Any copyrighted material on these pages is included as "fair use", for the purpose of study, review or critical analysis only, and will be removed at the request of copyright owner(s). Report broken links, missing images and errors to - overgrownpath at hotmail dot co dot uk

Comments

Pliable said…
Nice to know the right people read An Overgrown Path.

From server logs -

ip-217-204-77-148.easynet.co.uk (Occupational Pensions Regulatory Authority) [Label IP Address]

England, Brighton, United Kingdom, 0 returning visit

Date Time WebPage
30th April 2008 10:00:59 No referring link
www.overgrownpath.com/2008/04/honey-i-just-shrunk-emi-pension-fund.html
30th April 2008 10:03:59 No referring link
www.overgrownpath.com/2008/04/honey-i-just-shrunk-emi-pension-fund.html

Recent popular posts

David Munrow - more than early music

Master musician who experienced the pain of genius

Soundtrack for a porn movie

All aboard the Martinu bandwagon

Whatever happened to the long tail of composers?

Is syncretic music the future?

The Berlin Philharmonic's darkest hour

Classical music should exploit its healing power

Nada Brahma - Sound is God

Scott Ross and the paradox of genius