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Hipgnosis Halts Dividends as New Fiscal Year Approaches
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Overview
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Hipgnosis, a music royalty fund, has decided to halt dividends until its new fiscal year to ensure sufficient cash resources. The company recently rejected a $440 million deal to sell its catalogues, and it needs to propose reorganization or wind up within six months. Additionally, 10 out of the company's 146 catalogues are likely to meet performance hurdles.
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How might the rejection of the $440 million deal impact Hipgnosis's future?
What are the potential consequences of Hipgnosis not declaring dividends?
What steps can Hipgnosis take to address the performance hurdles in its catalogues?
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