The private equity company's takeover of the UK music major was financed by Citigroup, but the relationship between both companies quickly went cold, thanks to the onset of the financial crisis and a decline in the recorded music market.

This left a debt syndication agreement between Terra and its bank almost impossible to reach and Citi holding £3.2bn of debt.

Terra Firma owner Guy Hands has repeatedly struggled to persuade investors to pour money into the company to avoid defaulting ...