{"id":80255,"date":"2024-04-22T15:12:36","date_gmt":"2024-04-22T19:12:36","guid":{"rendered":"https:\/\/www.cyberlego.com\/web\/2024\/04\/22\/hipgnosis-song-management-fires-back-at-songs-fund-board-will-vigorously-protect-our-interests\/"},"modified":"2024-04-22T15:12:36","modified_gmt":"2024-04-22T19:12:36","slug":"hipgnosis-song-management-fires-back-at-songs-fund-board-will-vigorously-protect-our-interests","status":"publish","type":"post","link":"https:\/\/www.cyberlego.com\/web\/2024\/04\/22\/hipgnosis-song-management-fires-back-at-songs-fund-board-will-vigorously-protect-our-interests\/","title":{"rendered":"Hipgnosis Song Management Fires Back at Songs Fund Board: \u2018Will Vigorously Protect [Our]\u00a0Interests\u2019"},"content":{"rendered":"

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\n\tHipgnosis Song Management (HSM), the investment advisor for the troubled music royalty fund Hipgnosis Songs Fund that has come under scrutiny for its handling of accounting issues<\/a>, released a statement Monday (April 22) saying it has \u201crepeatedly been blamed for many issues affecting the [Songs Fund] which were not HSM\u2019s responsibility\u201d and that it \u201cwill vigorously protect its interests should the [Songs Fund board] purport to terminate\u201d it as investment advisor.<\/p>\n

\n\tThe statement comes after a wave of headlines in the past month dating back to the March 28 release of a report<\/a> by Shot Tower Capital which alleged that HSM, as investment advisor for Hipgnosis Songs Fund \u2014 which owns full or partial rights to song catalogs from the Red Hot Chili Peppers<\/a>, Shakira<\/a> and Neil Young<\/a>, among others \u2014 overstated its revenues, the scope of its assets and its earnings in disclosures to investors and regulators. That followed a vote last October in which shareholders first rejected a proposed sale of some of the fund\u2019s song catalog and a subsequent vote of no to continuation<\/a> \u2014 the equivalent of a vote of no confidence \u2014 in the fund\u2019s previous board and its investment advisor HSM, prompting the formation of a new board with a new chairman<\/a>, Rob Naylor<\/strong>. (Merck Mercuriadis<\/strong>, the founder of the fund, moved from CEO of HSM to chairman<\/a> in February.)<\/p>\n

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\t\t\t\t\tRelated\t\t<\/p>\n<\/h3><\/div>\n

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\t\t\t\t\t\t\"Hipgnosis\"<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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\t\t\t\t\tHipgnosis Songs Fund Board Likes Blackstone\u2019s \u2018Possible\u2019 $1.5 Billion\u00a0Bid\t\t<\/p>\n<\/h3><\/div>\n

\t\t<\/a><\/p>\n<\/div><\/div>\n

\n\tIn the past few days, two potential takeover bids have been submitted to the board of Hipgnosis Songs Fund: one from Concord at $1.4 billion<\/a> and the other from Blackstone<\/a>, which is the majority owner of HSM, at $1.5 billion. The initial Concord bid suggested that the publishing company would take over management of the fund\u2019s catalog from HSM, which would require 12 months\u2019 written notice; a fee equal to one year of services; and, at the end of that year, allowing HSM to exercise a call option to buy the portfolio\u2019s assets by outbidding any competing offer, according to previous filings.<\/p>\n

\n\tIn the new statement, HSM indicates that it would exercise that call option if it becomes necessary.<\/p>\n

\n\t\u201cBased on extensive legal advice we are confident that the [Songs Fund] has no legal grounds to terminate our relationship without being subject to HSM\u2019s contractual rights contained in the [investment advisory agreement, or IAA],\u201d Hipgnosis Songs Management\u2019s statement reads. \u201cHSM has explained this in detailed legal correspondence with the [fund]. The [fund] has not responded to HSM on the legal arguments it has presented.<\/p>\n

\n\t\u201cHSM will vigorously protect its interests should the [fund] purport to terminate the IAA,\u201d the statement continues. \u201cWe will use all means necessary to defend our contractual position and interests. It is important that shareholders, songwriters and artists understand that HSM has acted appropriately and professionally in our role as Investment Advisor and fully in accordance with the IAA.<\/p>\n

\n\t\u201cTo be clear, were the [fund] to purport to terminate the IAA and\/or hand HSM\u2019s responsibilities under the IAA to a third party, HSM and its majority shareholder are fully resolved to protect all of our rights under the IAA, including the right to exercise the call option to acquire the [fund]\u2019s assets.\u201d<\/p>\n

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\t\t\t\t\tRelated\t\t<\/p>\n<\/h3><\/div>\n

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\t\t\t\t\t\t\"Hipgnosis\"<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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\t\t\t\t\tHipgnosis Songs Fund Overstated Revenue, Earnings & Its Stakes in Music Catalogs, Says\u2026\t\t<\/p>\n<\/h3><\/div>\n

\t\t<\/a><\/p>\n<\/div><\/div>\n

\n\tEarlier today, the board of Hipgnosis Songs Fund said that, were Blackstone to officially file its $1.5 billion bid to take over the company, it would support that option<\/a> over the Concord bid from last week. And given Blackstone\u2019s majority ownership of HSM, it would presumably follow that HSM would then continue in its role as investment advisor, meaning HSM would not have to exercise its call option in the end. The Blackstone bid is effectively the same as the call option.<\/p>\n

\n\tFurther bids may still arise as the situation continues to unfold. The next step would be a June 10 meeting in which shareholders would vote on approval of any bid that formally comes in.\u00a0<\/p>\n<\/div>\n<\/div>\n

Aller \u00e0 la source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hipgnosis Song Management (HSM), the investment advisor for the troubled music royalty fund Hipgnosis Songs Fund that has come under scrutiny for its handling of accounting issues, released a statement Monday (April 22) saying it has \u201crepeatedly been blamed for many issues affecting the [Songs Fund] which were not HSM\u2019s responsibility\u201d and that it \u201cwill […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-80255","post","type-post","status-publish","format-standard","hentry","category-musique","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/80255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/comments?post=80255"}],"version-history":[{"count":0,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/80255\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/media?parent=80255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/categories?post=80255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/tags?post=80255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}