Guy Hands' Terra Firma vehicle faces up to £170m in additional charges on its purchase of music publisher EMI after the breakdown of talks with the trustees of the company pension scheme.

The trustees have asked the Pensions Regulator to decide how much additional cash the scheme ought to hold after EMI's sale to Terra Firma, a deal that left the music group £2.85bn in debt. It is the first time the regulator has been required to use these powers.