(Reuters) -Hipgnosis Songs Fund Ltd, which had been undertaking a review of its financial position, said on Monday it would not declare dividends before its new fiscal year to ensure sufficient cash resources.
Shareholders of music investor Hipgnosis last month rejected a $440 million deal to sell the firm’s 29 catalogues and the company needs to propose reorganisation or wind up within six months after shareholders also voted against the firm’s current structure.
The music royalty fund said catalogue bonus provision was expected to increase by about $23 million to $68 million as at Sept. 30, adding that operating cash flow would be used to fund the payment of catalogue bonuses.
It added that 10 out of the company’s 146 catalogues were likely to meet “performance hurdles” now according to the respective acquisition agreements.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich)
