269 Pensioners Could Bring EMI To Its Knees
Piled on top of all of the money that EMI owes to investors and CitiGroup are the needs of 269 former employees owed pensions by the company. The shortfall in EMI's fund is estimated to between £115m (178 million US) and £217m ($336 million US). In its recent annual report, EMI admitted that the deficit was one if the major factors that cast "fundamental uncertainty" over the company's future.
Only 269 members are served by the fund which was closed to new joiners in November 2005. But the pension dispute could be "the straw that breaks the camel's back," independent pension consultant John Ralfe told the BBC. "The outcome of the [pension regulator's] determination could conceivably push the company into administration."
The deficit in the EMI pension fund began in 2007 and was referred to Pensions Regulator then. Recent EMI financial troubles could reportedly force the government to finally take action.