Tom Jones's achievement was to be recognised

Writs organiser, broadcaster and writer Peter Phillips said a full statement explaining the reason behind the cancellation will be released next Thursday.

However, he said the organisers were considering taking legal action against Whitbread Walker, the events management company who have withdrawn from the ceremony.

Mr Phillips said it had got to a point where the two parties could no longer work together.

Whitbread Walker, who were backing the event, have said they "no longer have anything to do" with it.

The Writs were to be held at the CIA

A spokesman said they could say no more due to the legal position, but it is understood they were unhappy with the delivery of big name acts.

The co-organiser of the event - multi-media entrepreneur Parry Cockwell - also pulled out of involvement two weeks ago, said Mr Phillips.

The Writs had already been moved in October from their original date of 27 November to January.

The ceremony was designed to give recognition to the Welsh music industry and had signed up Linford Christie and athlete Darren Campbell to present the awards.

They had also been endorsed by Welsh Assembly First Minister Rhodri Morgan.

Linford Christie was due to present the awards

Ash, Welsh group the Lost Prophets, Matthew Jay, MC Mabon and Terris were all lined up to perform on the night.

The achievements of popular music in Wales over the last 40 years and including superstars such as Tom Jones were due to have been recognised.

Nominees for the Unsigned Award at the ceremony were announced at a conference on Tuesday 18 December.

The 12 nominees were to have been invited to play at three events in Cardiff and Wrexham during the run up to the event, with the winner then going on to playing live on the night of the awards.

On Friday Peter Phillips expressed his disappointment that what was designed to be a showcase event had failed.

"It's terribly disappointing to have got this project this far and for it too come to this is galling," Mr Phillips said.