Sanctuary Unveils Rescue Plans
Executive chairman Andy Taylor said: 'The past 12 months have been the most difficult and challenging period that Sanctuary has ever had.'However, he said he was confident the business could return to financial health.
Sanctuary, which as well as being the UK's biggest independent record label also has a management arm, said it was close to implementing the fundraising and had received 'indications of support' from institutional investors.
Part of the share issue will be open to existing investors to make up for the dilution of their holdings. The group also said it had reached agreement with its main lender to cancel £35m of its debt.
The group runs a global management business for music artists with stars such as Manic Street Preachers, Nelly, Morrissey and Iron Maiden on its books. It also owns the biggest live tour booking agency outside the United States and sells official merchandise.
Sanctuary, which recently admitted it had expanded too rapidly, has been hit by delays to releases within its Urban division featuring rap and R&B artists.
As part of a drive to address its problems, the firm cut its global workforce by a quarter and decided to sell non-core operations including its music publishing and studio businesses.