Terra Firma could still be on the hook for EMI Group’s pension liabilities, some lawyers believe, despite denials by those close to the firm that there is any future risk.

According to a source close to the situation, at the time of the music company's buyout in 2007 Terra Firma did not obtain clearance from the Pensions Regulator - an agreement that helps to protect it from future action by the regulator. But a near-£200m funding agreement over the next few years involving EMI, the pension scheme trustees and the regulator last year meant EMI had assumed the liabilities for the scheme, he added.