British music and entertainment company Sanctuary Group is to raise as much as 130 million pounds in a share issue to keep itself afloat, newspaper reports said on December 4, 2005.

The Independent said Sanctuary, which is behind artists such as Elton John and James Blunt, is expected to seek 100 million pounds and would make the announcement in around two weeks, probably as it reports its annual results which are usually delivered in January 2006.

Without citing sources, the newspaper also said Sanctuary was likely to announce a management reshuffle.

Separately the Sunday Times said Sanctuary was preparing a 130 million pound fundraising to help it restructure and restate its accounts going back three years.

The fundraising drive comes as the company, which has issued a series of profit warnings this year, continues negotiations with its principal lender, HBOS, about its 120 million pounds borrowings, the report said.

No-one at Sanctuary could be reached for comment.

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