In an interview Tuesday, EMI Chief Executive Roger Faxon—who along with the company's other executives is remaining in place—said EMI's debt load had constrained management's ability to run the business effectively. EMI "has a long-term future that's very bright, but that was impaired by the level of debt."
Given the imbalance between the company's debt load and its value, Mr. Faxon described Tuesday's action as "an inevitability." But he played down the notion that even subsequent changes in ownership could herald big changes at the company.
"Yes, EMI will at some date in the future be sold by Citibank," Mr. Faxon said. "But we will be sold to someone that believes in that future." He declined to say who he thought that buyer might be, adding without elaboration: "There are any number of businesses and investment groups that would find it appealing."
Write to Dana Cimilluca at dana.cimilluca@wsj.com and Ethan Smith at ethan.smith@wsj.com
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