The board of Hipgnosis Songs Fund (SONG) has announced today that its investment adviser (founded by Mr Mercuriadis and where he is a director), has refused to indemnify SONG against liabilities which may arise from Mr Mercuriadis’ alleged misconduct.
SONG had previously been assured by Mr Mercuriadis and the investment adviser that the legal claims that he and the adviser faced are without merit and that he and the advisor intend to vigorously defend them. This means that their refusal of a request for an indemnity is a concern for SONG, as it is not insured as to the costs of this claim. The board announced its intention to seek indemnity from Mr Mercuriadis on 5 February.
SONG now intends to bring a Part 20 Claim in the High Court against the investment adviser in which it will seek a full indemnity.