People News
Michael Jackson's running out of money
By Stone Martindale Oct 28, 2007, 4:20 GMT
Michael Jackson - New York, NY © Wild1 / Photorazzi
Michael Jackson has defaulted on a $23 million loan and the holder has put him on notice. Jackson has 90 days to pay the full amount — $23 million plus $212,963.83 in interest — or he will lose his Neverland Ranch.
FOX News Roger Friedman reports the papers were filed in Santa Barbara County on Oct. 22, but apparently Jackson’s loan with Fortress Music Trust, doing business as DBCG LLC, a Delaware corporation, expired on Oct. 12.
Friedman writes that the $20 million loan was secured against the deed of trust for Neverland and is separate from the $300 million loan secured by Jackson’s stake in Sony/ATV Music Publishing.
The papers filed are titled “Notice of Default and Election to Sell.” No amount of wishing by Jackson fans or spin from his much-diminished team can change what they mean.
The default comes at a time when Jackson is being sued in London for $7 million by his former patron, Prince Abdullah of Bahrain. Jackson’s lawyers recently settled several other lawsuits but have not paid them off. That amount comes in the millions as well.
Friedman cites speculation that the cash-strapped Jackson could file for bankruptcy in the next 90 days to guard against further disasters.
Jackson recently admitted in sworn testimony to impairment due to prescription drug abuse — is living in Washington, D.C., where he’s renting an expensive home, according to Friedman.
His Neverland Ranch stands vacant. The ranch’s value was assessed in 2006 at $17,042,560. The land value was $6,898,858. Overall, the ranch has an improvement value of $11,034,702.
Friedman reports that the ranch is not Jackson’s only piece of highly leveraged property.
According to records, the Jackson family home in Encino — which Michael owns — carries a $4 million mortgage. That house, known as Hayvenhurst, has an assessed value of $2.66 million and an improvement value of $2.3 million.
Friedman writes that the Jackson’s parents are the official tenants of that house.
In 2006, the state of California threatened to shut down both homes to employees when it turned out Jackson had fallen behind in insurance payments and salaries.
Despite the fact Jackson owns 50 percent interest in Sony/ATV Music Publishing - an interest possibly worth $600 million, as some have calculated, yet Friedman contends that the $323 million in loans, if subtracted, plus all the other settlements, (Jackson’s huge tax and legal bills), the situation is pretty bad.
The singer does have an out clause from his last refinancing with Sony and Fortress for a liquidation sale come May 31, 2008.
Friedman muses Jackson may lose Neverland.
"But Jackson’s lawyers at Venable LLC in Washington may convince Fortress to back off or they may find a new white knight in the next three months. Either way, Jackson is in the worst financial situation he’s ever faced," reports Friedman.
COMMENT
blog comments powered by DisqusLatest Headlines in People
- 1. Verne Troyer trapped in airplane toilet
- 2. Sophie Monk saved Ray J's life?
- 3. Brooke Mueller returns to rehab
- 4. Gwyneth Paltrow's diaper dream
- 5. Stephen Moyer: Anna's pregnancy brings 'crazy'
Older Talkback
page: 1
Jackson is just another burned-out-has-been, with both his reputation and finances in tatters.
ok people
lets take up a donation for mike.
Why is m&c re-reporting what Roger Friedman has to say? He said Michael Jackson was out of money way back in 2001 because of a $200 million dollar loan. I remember 'cause I remember being surprised by it when I read it. I guess he's upped the loan to $300 million. Whatever is going on with Michael Jackson's money, I really don't care. I'm too busy trying to figure out how I'm going to pay my own mortgage which has skyrocketed recently. I won't rejoice in hearing that somebody else could lose their home and neither should Roger Friedman.
Seems like I remember a story of him running out of money a few years ago too. As like most celebrities, he spent money living a pretty high life. Everytime I see an excerpt from his 'Thriller' video, I yearn for the 'old' Michael. He was so talented and pretty good looking - so sorry he didn't stay there!
i think people need to stop sticking their noses in michael business and try to improve their own pittiful life because no one cares about what they have to say about him any more. he's a strong and courageous person.
Well let's see, all of the reports just love Michael, they have nothing better to do with their time than to find out what is going on with Michael. In fact they love him so much they want to be just like him. They wished they had the money he have, they wish they had his look, they wish the can dance like him. Oh my gosh I could go on and on and on. But other wise my point is. Why don't they just get a life and leave Michael J alone. Better yet why dont concentrate on the Jena 6 or that williams girl that those 6 nasty white folks kidnapped her. Why can't they report on real news. GET A LIFE TO ALL THE REPORTOR OUT THERE THAT ONLY LIKE TO REPORT ON STUPID STUFF.
CHARBABY
4 god sake he's michael jackon.. no need 2 say more..
he's the king of pop..
..like Osbourne did. It would be hilarious. Also, might pay for his upkeep and relaunch his career judging something.
All the best for you MJ... Hope u will get true this and keep your wonderfull home..
Does anyone use punctuation, proper spelling, or correct grammar anymore? Who is writing on these boards, 3rd graders?
It is incredible how jacko has screwed up over and over, he hasnt figured it out...
It is so amazing how time away from the spotlight adds flavor to an enriched superstar! 1,000,000 people registered to attend a concert that barely had any publicity. Michael has rereleased Thriller a couple of times--once on iTunes and as a CD and it went to number 1 twice. Its time that people keep Michael up there with Elvis and the Beatles...because he is a critic silencer!
page: 1
jakeOct 28th, 2007 - 09:18:31
honestly, i don't know why anyone listens to roger friedman.
the man is a poor reporter, as his 'exclusive reports' are often proved by michael jackson's people as being false and for some strange reason, fox news always has the exclusive scoop on michael jackson, with much of his information conflicting with michael jackson's own messages to the public
perhaps a gossip column would be better for him....
Report this comment