EMI Group Ltd. named Roger Faxon as chief executive officer, following a strategic review of the record company and a capital injection by shareholder Terra Firma Capital Partners Ltd. to keep creditors at bay.
Faxon, the head of EMI’s New York-based publishing business since 2007, will oversee the company’s recording and publishing units just months after EMI named Charles Allen executive chairman of recorded music. Allen now becomes adviser to EMI and Guy Hands’s Terra Firma.
“This is a new approach and new way of operating that needs to happen for EMI,” Faxon said in a phone interview today. “We’re putting teams together across the expanse of the business to give the greatest chance for success.”
EMI, which is home to artists including The Beatles, Kylie Minogue and Coldplay, is repositioning itself as a “comprehensive rights management company” after the 105 million-pound ($156 million) capital injection to meet loan agreements. Guy Hands bought EMI at the height of the buyout boom in 2007 and had to convince investors to put more money in the company after breaking covenants.
“The group as an operating company is very successful,” Faxon said. “The capital structure is where the issue is, but we now have 105 million pounds committed, which is evidence of the belief of Terra Firma.”
Faxon, who joined EMI in 1994, will remain based in New York and will spend more time in London, where the recorded music unit is headquartered.
He stressed that although EMI has been operating in turbulent financial markets, the company now “has a way forward and we will be executing it.”
The capital injection by Terra Firma allows EMI to meet its debt agreements until March.
EMI also said Stephen Alexander was named chairman of Maltby Capital, EMI’s holding company.