Investors in Terra Firma have approved plans for the private equity house run by financier Guy Hands to inject £300m of equity into EMI as part of a potential refinancing of the music group’s £2.6bn debts.

Mr Hands is understood to be working with Barclays, JPMorgan and Morgan Stanley on a plan to raise £200m-£280m from a high-yield bond issue that could repay some of the debt EMI owes to Citigroup.