Sanctuary Group is overhauling its board structure as the embattled British music firm progresses toward completing its life-preserving fund raising.

Sanctuary Group is overhauling its board structure as the embattled British music firm progresses toward completing its life-preserving fund raising.

Following the appointment of a yet-to-be announced non-executive chairman, Billboard.biz has learned that Sanctuary will create a "plc board" -- whose structure would be closer to that of listed music major EMI Group -- and an "operating board," which will regroup the company's top management.

The Sanctuary board will comprise group co-founder Andy Taylor, the non-exec chairman, recently-appointed group finance director Paul Wallace, and various non-executive directors.

A spokesman at Sanctuary declined to comment on reports that former British Airways CEO Bob Ayling is in pole-position for the job as non-executive chairman. An announcement is not expected before its financial rescue plan is due for completion on March 20.

As previously reported, Taylor intends to switch from his executive chairmanship into the chief executive role.

As part of the new structure going forward, group CEO Merck Mercuriadis, CEO of Sanctuary Recorded Music Worldwide Joe Cokell, CEO of Sanctuary Artist Services Worldwide Aky Najeeb and corporate development director Mike Miller will resign from Sanctuary's current board and will sit on a new "operating board" along with Taylor and Wallace.

The new dual-configuration is expected to present a more sophisticated market-facing set-up as the 30-year-old company enters a new phase of its existence.

Sanctuary was today (Feb. 21) expected to post its prospectus, outlining details of its placing and open offer.

It comes after Sanctuary confirmed on Feb. 3 details of a heavily-discounted £110 million ($195 million) equity fund-raising package to help recover from heavy losses.

The purpose of the initiative, Sanctuary says, is to make a repayment of £4.7 million ($8.1 million) while the balance of around £96.2 million ($167 million) will be used to repay some of the group's debt.

Sanctuary has also agreed new banking facilities of £65 million ($113 million) with the Bank of Scotland.

The proposed fund raising is conditional upon the passing of resolutions at an extraordinary general meeting, which has been convened for March 17.