Guy Hands is to sue Citigroup in the High Court after withdrawing his EMI claim in New York.
Mr Hands, the private-equity investor who bought the music label in 2007 for £4.7bn, withdrew the New York lawsuit after a planned retrial was delayed.
He and the bank have instead agreed to consolidate his various claims — he filed three against the bank in November — and have them heard in England.
Terra Firma, which Mr Hands runs, bought EMI in a highly leveraged deal in August 2007, but the deal quickly unravelled, and a major restructuring led to sizeable writedowns. He is suing Citigroup, the primary lender, over alleged fraud during the original auction for the business.
Citigroup defeated Terra Firma in a New York court in November 2010, with control of the music business passing to the bank.
But a US judge ordered a retrial, which ended up being pushed back to July this year.
A spokesman for Terra Firma and Citigroup confirmed they “have together decided that their disputes should be resolved in one set of proceedings”.
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