EMI CEO Addresses 'Crazy Headlines'
November 12, 2010 at 4:28 AM (PT)
EMI GROUP CEO ROGER FAXON was busy trying to dispel "crazy headlines" about the music label YESTERDAY (11/11), reports THE NEW YORK POST. In the wake of last week's CITIGROUP win over TERRA FIRMA in court (NET NEWS 11/4) over the purchase of EMI, FAXON issued a memo "trying to quell rampant speculation about the fate of EMI."
The memo from EMI's Chief was printed by BILLBOARD MAGAZINE, but THE POST writes FAXON felt it "presented a string of supposedly erroneous headlines."
FAXON said one headline, "EMI WILL GO INTO CHAPTER 11 IF IT FAILS ITS COVENANTS!!" -- is "more fairy tale than actual journalism. For a start, EMI is a British company and there's no such thing as Chapter 11 in the U.K. And as our most recent results make very clear, EMI is easily meeting all its debt obligations, and paying all its bills, with room to spare."
FAXON also told his troops that the "takeover" rumors -- are just that. "I don't know if you've looked at any of our competitors recently, but none of them are having a particularly easy time of it. And having been involved [in] the doomed merger of EMI and WARNER MUSIC in 2000, I can tell you there is no easy route through those issues."
FAXON is adamant that a break-up of the company is not in its best interests. "As was clear from the trial documents, splitting the company up was looked at along the way. But it went away because it simply would not work. To be clear, the global rights management strategy for growth can only be pursued if the company is kept together and so it will be."