Michael Jackson may have been the King of Pop but he owed a princely sum when he died.
New legal papers say Jacko owed more than $500million and his estate was near-bankrupt.
His dire finances emerged as lawyers who say they turned around the fortunes of his estate submitted multi-million dollar claims for fees.
The Thriller star owed more than 65 creditors when he died from an apparent cardiac
arrest in June 2009, aged 50, says the filing in Los Angeles.
In March, estate executor attorney John Branca, A&R executive John McClain and their legal counsel, Jonathan Steinsapir
and Saul Ewing, claimed the estate was saddled with debt when they saved it. It has since bounced back and is now valued at more than $1.5billion.
Jackson had “more than half a dozen lawsuits pending worldwide” at the time of his death with creditors’ claims spawning new lawsuits, “of which several resulted in litigation,” the petition reads.
After his death, attorneys for the executors handled 15 lawsuits in America and assisted with more in Europe and Japan, most of which they say were resolved.
The claim says: “The executors were able to renegotiate and restructure financing arrangements that existed at the time of Michael’s death.”
It says these were at “substantially reduced interest rates, enabling the estate to avoid the loss of any assets to
the lenders”.
Renegotiations included debt secured by Jackson ’s catalogue Mijac Music, the estate’s interest in Sony/ATV3 and the mortgage on his Hayvenhurst estate and Lindley Avenue apartment in Encino. According to the petition, the executors also obtained an interest in EMI Music Publishing as a result of negotiations with Sony in 2012.
Michael Jackson’s financial troubles were well known at the time of his death, with over $500 million in debt to more than 65 creditors. However, the estate has seen a remarkable turnaround since then, with the value now exceeding $1.5 billion. This remarkable recovery can be attributed to the efforts of estate executor attorney John Branca, A&R executive John McClain, and their legal team. They successfully renegotiated financing arrangements, reduced interest rates, and even acquired an interest in EMI Music Publishing. The estate faced numerous lawsuits after Jackson’s death, but the executors were able to resolve most of them, ensuring that no assets were lost to creditors. This success story serves as a reminder of the importance of sound financial management, even in the face of seemingly insurmountable debt.
Michael Jackson’s financial troubles were well known at the time of his death, with over $500 million in debt to more than 65 creditors. However, the estate has seen a remarkable turnaround since then, with the value now exceeding $1.5 billion. This remarkable recovery can be attributed to the efforts of estate executor attorney John Branca, A&R executive John McClain, and their legal team.They successfully renegotiated financing arrangements, reduced interest rates, and even acquired an interest in EMI Music Publishing. The estate faced numerous lawsuits after Jackson’s death, but the executors were able to resolve most of them, ensuring that no assets were lost to creditors.This success story serves as a reminder of the importance of sound financial management, even in the face of seemingly insurmountable debt. It highlights the crucial role of competent legal counsel in managing and resolving complex financial issues. By skillfully renegotiating financial agreements and efficiently handling legal matters, the estate was able to emerge from near-bankruptcy to a position of financial strength.The case of Michael Jackson’s estate is a testament to the potential for financial recovery, even in the most challenging circumstances. It underscores the value of proactive and strategic financial planning, along with effective legal representation, in overcoming significant debt and securing a stable financial future.In conclusion, the successful turnaround of Michael Jackson’s estate demonstrates the power of diligent financial management and skilled legal intervention in resolving complex financial crises. It serves as a valuable lesson in navigating financial challenges and emerging stronger on the other side. Let this story inspire and motivate you to approach your financial affairs with careful consideration and expert guidance.
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Source: Tampa Bay Times
