LONDON (CelebrityAccess) — Hipgnosis Songs Fund Ltd, owners of music catalogs by artists such as Red Hot Chili Peppers, Kenny Chesney, and Justin Bieber, announced that after a review of its financial position, it would not declare new dividends until the start of the fiscal year 2024 in April in a bid to conserve cash.
The review follows a shareholder vote in late October where shareholders rejected a proposed $440 million sale of 29 music catalogs to private equity backer Blackstone and immediately remove chairman Andrew Sutch.
Shareholders also voted to reject proposals for the investment fund to continue operating as an investment trust for another five years, prompting the review.
The announcement about dividends also follows Hipgnosis’ decision last month to suspend previously announced dividends in the wake of lowered retroactive royalty payments following the CRB III decision.
Additionally, Hipgnosis revealed that its catalogs are underperforming with just ten out of the Company’s 146 music catalogs likely to meet performance hurdles as defined in their acquisition agreements.
At the same time, Hipgnosis said the catalogue bonus provision was expected to increase by about $23 million to $68 million as of Sept. 30.
