Allen says EMI in good shape

11:05 | Tuesday June 8, 2010

In what was claimed to be the first broadcast interview the executive chairman has made since taking over EMI earlier this year, Allen said he has a difficult message to get across that the business is in “really good shape” after massive restructuring and job cuts.

In the BBC Radio 4 documentary EMI: Facing The Music, Allen told Damian Reece, head of business at the Telegraph, that it is the balance sheet that is challenged and added the £105m of new investment owners Terra Firma recently secured “means we can start the process of strengthening the balance sheet and we can get on doing what we are doing”.

Allen also said the first part of the new investment will buy EMI “at least a year”. He added, “But actually when you look at the results then it can buy us more time. I think it is about putting the first building block of the balance sheet restructuring in place and I think that gives confidence because why would you write a cheque for around £100m and not look to invest in the business further.”

Terra is asking for a further £255m investment to renegotiate debt and Allen, who admitted many companies bought at the height of the market where now refinancing, conceded the company would face similar difficulties next year if the money does not appear.

The programme also featured Robbie Williams’ manager Tim Clark and Jazz Summers (see Focus Business & Politics for more).