But who’s kidding who? In its annual report, EMI parent Maltby Capital expressed a “principal uncertainty” related to loan covenants. That is, the major label is likely to experience more difficulty meeting Citigroup payment deadlines, despite a recent investor injection of 105 million pounds ($164 million).

Suddenly, the sinkhole features widening debt obligations and renewed default risk, hardly the glamour-filled existence Guy Hands must have imagined prior to the $4.7 billion acquisition in 2007.

Faxon, the freshly-installed CEO, pulls considerable cred from the publishing end. According to the New York Post and its motley crew of sources, Faxon is now finalizing a plan that could include securitization of publishing assets or even a sale of the recording unit. Outsourced distribution initiatives may also be on the table, despite a previous breakdown in talks with rival label groups.

Sounds like a rehash of tired life-savers, raising the question of whether more innovative – and risky – ideas are anywhere nearby. Stay tuned.

Charles Allen, formerly non-executive chairman of EMI Recorded Music, will be become an adviser to EMI and corporate parent Terra Firma.

“I believe that the two divisions working in concert with one another as a global rights management business, can and will deliver for the artists and songwriters that we are privileged to work with now and in the future,” said Faxon.

Instead of hitching to that hull, the singer urged bands to self-release, and keep control in turbulent times. “I guess I would say, don’t tie yourself to the sinking ship because, believe me, it’s sinking,” Yorke said. The interview was conducted for the not-yet-released Rax Active Citizen Toolkit, oddly a textbook.

Good advice? Yorke walks the walk on this one, and his former label EMI is now in dire straits. But Radiohead is largely a pre-digital success story, making it difficult to pick apart real innovation from previous tailwinds. Radiohead’s name-your-price concept stirred a tremendous amount of excitement, but its broader application for emerging artists could be unimportant. Indeed, Radiohead admitted that most fans paid nothing for the In Rainbows album, and resulting studies revealed that BitTorrent downloads easily outpaced official site downloads.

Meanwhile, Radiohead’s enmity towards its former label carries a bit of hypocrisy, though major label tie-ups are typically complicated affairs for artists. “When the corporate industry dies it will be no great loss to the world,” Yorke continued.

So what next?  EMI Music holds the rights to the older catalog, though the latest EMI release – Of the Blue Colour of the Sky – is now getting a fresh re-release under Paracadute/RED in July.

The latest dust-up follows the departure of Syd Schwartz, an EMI veteran of eight years.  As first reported by Digital Music News, the digitally-oriented Schwartz suddenly stepped away from the building this week to pursue as-yet-undefined entrepreneurial pursuits.  Sounds suspicious, though Schwartz underscored to Digital Music News that he definitely “wasn’t a reduction,” and both Schwartz and EMI confirmed a consulting relationship between the pair.

Meanwhile, EMI declined that any reductions were happening on the recording side of the house.  Instead, EMI Music representative Jeanne Meyer pointed to a building process, and even noted that the company is now “interviewing candidates for a number of different digitally-focused roles.”

EMI Music is known for making lots of staffing announcements, and this week was no different.  The company has just bumped Mike Harris to Executive Vice President and General Manager for EMI Label Services and Caroline Distribution.  Harris was previously Executive Vice President and Chief Financial Officer of New Music North America.

Over on the publishing side, the situation is equally foggy.  The group has confirmed a far broader revamping of its European operation, one designed to consolidate and retread towards a marketplace less defined by country borders.  But that process appears to be coming at the expense of various country MDs, according to numerous reports and sources. Representatives at EMI Music Publishing declined comment on any staffing shifts.  Stay tuned.

The story is a lot more complicated than that, though perhaps EMI is simply an easy punching bag at this stage*. Part of the blame should also be shared by Apple Corps., the Beatles business entity, though finger-pointing is never a sign of progress.

Either way, the band known for smashing and evolving creatively is now a total dud in the digital space. The Beatles are one of the last standouts on iTunes (and other platforms), for reasons that seem difficult to articulate.

*EMI subsequently offered a statement after the initial publication of this report. “Discussions are ongoing,” an EMI representative stated. “We would love to see The Beatles’ music available for sale digitally.”

Just recently, EMI owner Terra Firma pitched investors on a 360 million pound ($557 million) rescue plan. That would mostly avoid a painful covenant breach and possible seizure by Citigroup, though Terra chief Guy Hands was also selling some outlandish return prospects. A more immediate injection of 105 million pounds is reportedly ‘close,’ according to one source, though the situation remains on edge.

And what about Warner Music Group? The label has been rumored to be kicking the tires, though during the latest quarterly, WMG chairman Edgar Bronfman mostly avoided the subject. “We really try not to respond to rumors and speculation… in light of the heightened media rumors and speculation regarding EMI, I think it’s prudent for us not to take any comment in that regard.”

Terra Firma head Guy Hands has received assurances from investors to commit an additional $159 million to EMI, which would reportedly cover terms of the loan until next spring; Hands had previously hoped to raise $546 million, to cover interest payments on its $4.6 billion loan from Citigroup through 2015. 

If Hands is unable to secure approval from enough Terra Firma investors, he would be forced to seek outside investments — but has only until May 14 to do so or else Citi will be in a position to potentially take over control of EMI. 

If Terra Firm is successful, the Times reports the company will look to sell its Christian music label and resurrect plans to license its U.S. music catalog.

But the meat-and-potatoes Beatles recording catalog will stay on the farm. In that light, this is mostly a symbolic move, especially since McCartney is a lightweight solo seller.

But the broader problem is a serious one for EMI. More and more artists are either leaving, suing, or strategizing towards the exit door. McCartney himself has been a critic of the company, and his unhappiness is getting expressed through both words and actions. Meanwhile, many of those ‘trapped on the inside’ are reportedly feeling the ill-effects of a downward-spiraling company, including the disruptive and distracting effects on campaigns and creative endeavors.