Hipgnosis Songs Fund Limited (LSE:SONG) slipped another 5% as it warned there would be no dividend this year due to a need to build up cash buffers to pay bigger-than-expected sums to its artists.
In the statement, Hipgnosis added it is changing the way it accounts for its revenue accrual, which will mean a reduction of 10%, according to early assessment.
Axing the dividend will mean operating cash flow this year will help pay the bigger Catalogue bonuses and keep it within banking covenants related to its revolving credit facility's Fixed Charge Cover Ratio.
The music rights owner is already in a state of limbo following the vote against its continuation in a recent shareholders' vote.
Most of the board has also left, leaving it to find a new chairman to either restructure the trust or wind it up within six months.
Shares dropped 2.7p to 69.8p.