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Jacko racing to 270M ruin
NY Daily News ^ | Dec. 8, 2005 | MICHELLE CARUSO

Posted on 12/08/2005 8:44:58 AM PST by COUNTrecount

LOS ANGELES - Michael Jackson faces a crushing $270 million foreclosure in two weeks that could mean he loses his Neverland Ranch and Sony Beatles music catalog, the Daily News has learned. And as the fallen star's financial D-day, Dec. 20, looms, he is "isolated and intoxicated" on prescription pills in Bahrain while frantic family members rush to plan a rescue mission to the Middle Eastern nation, sources said yesterday.

"It's a meltdown - Michael's life is on the line, physically, and his finances are in ruins because he has listened to the wrong people," said one source familiar with Jackson's business woes.

His family, especially brother Randy and sister Janet, are frantic. "Janet thinks he needs 12 months of rehab. ...Randy wants to get Michael out of the clutches of handlers who don't have his best interests at heart," alleged the business source.

"All of the chickens have come home to roost. Michael will be homeless - a houseguest of the prince [of Bahrain]," said a family source familiar with the crisis.

Jackson's three kids and nanny Grace Rwaramba are with him, guests of the royal family. "Grace has been calling the shots. She has made it difficult for the family to communicate with Michael," said the business source.

The heavily mortgaged and leveraged pop star's financial woes heated up last spring while he was on trial for child molestation, according to the business source.

At the time, Jackson owed $270 million to Bank of America (two loans, one for $70 million and another for $200 million.), the source said. The debt was secured by the singer's Neverland Ranch and his share of the SONY/ATV music catalog, which some experts think may be worth $1 billion or more.

In April, Jackson defaulted on the smaller loan, triggering a total revamp of his finances, the source said. In May, Fortress Investments bought Jackson's $270 million loan package from the bank and tried to work out a payment plan with the pop star, who was acquitted of all criminal charges last June.

But Jackson failed to make his payments and defaulted in October, according to the source. Now, Dec. 20 looms as the foreclosure date and sources say Jackson has no way of paying off the massive note. That means Fortress will have to sell off his assets to recoup their $270 million, the source said.

In addition, Jackson has failed to make payments on a $2.2 million second mortgage he took out on the family's Hayvenhurst mansion in Encino, Calif., and his kin expect to get the boot in the new year.

Jackson bought the home for his family in the 1970s, and his mom, Katherine, brothers Randy and Jermaine, Jermaine's ex-wife Alejandra and several of Randy and Jermaine's kids now live there. Dad Joe is said to spend little time there.

"They are making plans to move. This is the home where Katherine raised her children and now she has to leave," said the source. Fortunately, Janet Jackson bought her 75-year-old mom a house in Las Vegas, so she won't be homeless.


TOPICS: News/Current Events
KEYWORDS: guiltyconscience; jacko; karma; michaeljackson; pervert
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1 posted on 12/08/2005 8:44:59 AM PST by COUNTrecount
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To: COUNTrecount

Boo Effing Hoo.


2 posted on 12/08/2005 8:46:48 AM PST by rlmorel ("Innocence seldom utters outraged shrieks. Guilt does." Whittaker Chambers)
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To: COUNTrecount

life can chew you up and spit you out, man....


3 posted on 12/08/2005 8:47:16 AM PST by InsureAmerica (Evil? I have many words for it. We are as dust, to them. - v v putin)
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To: COUNTrecount
If you want to "play" you got to PAY!!
4 posted on 12/08/2005 8:47:39 AM PST by cavtrooper21 (No snappy tagline ideas available at this time... Please try again later.)
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To: COUNTrecount

What about the mortgage on his nose?


5 posted on 12/08/2005 8:48:17 AM PST by SWAMPSNIPER (LET ME DIE ON MY FEET IN MY SWAMP, ALEX KOZINSKI FOR SCOTUS)
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To: COUNTrecount

Just goes to show you can't borrow yourself to prosperity, no matter what your income...


6 posted on 12/08/2005 8:48:21 AM PST by abb (Because News Reporting is too important to be left to the Journalists.)
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To: COUNTrecount
Grace has been calling the shots.
I thought that was Tookie's turf"
7 posted on 12/08/2005 8:48:40 AM PST by Republicus2001
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To: COUNTrecount

Jackson will never be homeless. He just won't be able to return to the United States.

He's moving/moved all of his assets overseas, and he's residing in Bahrain. His creditors will have a hard time collecting now.


8 posted on 12/08/2005 8:48:44 AM PST by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: COUNTrecount
A rgas to riches to rags story


9 posted on 12/08/2005 8:49:04 AM PST by finnman69 (cum puella incedit minore medio corpore sub quo manifestu s globus, inflammare animos)
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To: COUNTrecount

Maybe he'll turn into a country singer, he's got some good source material.


10 posted on 12/08/2005 8:49:36 AM PST by Pondman88
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To: COUNTrecount
"All of the chickens have come home to roost. Michael will be homeless - a houseguest of the prince [of Bahrain],"

that's not really homeless, is it?

11 posted on 12/08/2005 8:49:38 AM PST by InvisibleChurch (The search for someone to blame is always successful. - Robert Half)
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To: COUNTrecount

Good news. Child rapists should not own anything. But especially their freedom. Hopefuly someday that will be taken too.


12 posted on 12/08/2005 8:50:20 AM PST by AbeKrieger (Islam is the virus that causes al-Qaeda.)
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To: COUNTrecount

sounds like paul has a good opportunity to get the beatle songs back


13 posted on 12/08/2005 8:50:28 AM PST by InvisibleChurch (The search for someone to blame is always successful. - Robert Half)
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To: cavtrooper21

This stupid family should have done something with this whack job years ago instead of pretending that there was nothing wrong! Poor Mrs. Jackson! You reap what you sow lady! Your kid needed your help about 20 plastic surgeries ago and all you can think about is your stupid house and maintaining false appearances!


14 posted on 12/08/2005 8:50:33 AM PST by LYSandra
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To: COUNTrecount

Couldn't happen to a nicer pedophile.


15 posted on 12/08/2005 8:50:55 AM PST by Slings and Arrows (Note for visitors at Arafat's grave - first dance, THEN pee.)
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To: COUNTrecount

I've said for a long time that before they depart from this world, most people who come into a lot of money during their lives end up in the same financial condition in which they would have been if they had never gotten the money at all.


16 posted on 12/08/2005 8:54:17 AM PST by Alberta's Child (What it all boils down to is that no one's really got it figured out just yet.)
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To: COUNTrecount
On the bright side, the freak can always support hisself baby sitting the ragheads kids.

It's a win - win for everyone.





17 posted on 12/08/2005 8:54:27 AM PST by G.Mason (Others have died for my freedom; now this is my mark ... Marine Corporal Jeffrey Starr, KIA 04-30-05)
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To: SWAMPSNIPER
LOL...which one?
18 posted on 12/08/2005 8:55:13 AM PST by EX52D ((I have shifted to "Christmas Survival Mode"))
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To: Alberta's Child

I would say that we all end up in the same financial condition when we depart this world.


19 posted on 12/08/2005 8:55:22 AM PST by Slings and Arrows (Note for visitors at Arafat's grave - first dance, THEN pee.)
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To: COUNTrecount

good, then maybe the pdeophile and his whole stinking family will crash out of the infamous news cycle.


20 posted on 12/08/2005 8:55:41 AM PST by Centurion2000 ((Aubrey, Tx) --- America, we get the best government corporations can buy.)
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To: SWAMPSNIPER

I think the "nose" was already repossessed.


21 posted on 12/08/2005 8:56:01 AM PST by lexington minuteman 1775
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To: COUNTrecount

He'll be dead within a year.


22 posted on 12/08/2005 8:56:13 AM PST by dfwgator
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To: Slings and Arrows

Or a nicer family of pedophile enablers.


23 posted on 12/08/2005 8:56:56 AM PST by sgtbono2002
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To: COUNTrecount

24 posted on 12/08/2005 8:59:11 AM PST by reagan_fanatic (Darwinism is a belief in the meaninglessness of existence - R. Kirk)
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To: COUNTrecount
Got a banking question.... If the beatles music catalog's is worth 1 billion. and he has used it as collateral, if they foreclose does that mean the entire value goes to the Bankers or is it sold and money above the servicing of the debt is returned to Jacko?
25 posted on 12/08/2005 8:59:45 AM PST by Walkingfeather
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To: COUNTrecount

If his share of the catalog is worth a BILLION and he owes 270Million... you simply quick fire sell the catalog for 1/2 a Billion and pocket a cool 100 Million after taxes.

Of course, that would be if you were dealing witha reasonable human being.


26 posted on 12/08/2005 9:00:29 AM PST by HamiltonJay
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To: sgtbono2002

That's a lot of people living in one house. Had they done what was right 20 years ago instead of enabling MJ they would all be rich. Meanwhile there are 2 little kids who will be living a very tragic life.


27 posted on 12/08/2005 9:01:30 AM PST by babaloo
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To: COUNTrecount

It's cause he's bla.......uh that is cause he used to be bla.........

Three kids? When did the third one come along?


28 posted on 12/08/2005 9:02:35 AM PST by F.J. Mitchell (Okay, bring our troops home. But don't feign suprise when the terrorists tag along.)
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To: babaloo

Very sad...doesn't he have 3?


29 posted on 12/08/2005 9:03:02 AM PST by EX52D ((I have shifted to "Christmas Survival Mode"))
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To: Slings and Arrows

heh.

What are we supposed to feel sorry for him now?


30 posted on 12/08/2005 9:04:01 AM PST by Tenny
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To: F.J. Mitchell

That was the baby he "dangled" over the balcony.


31 posted on 12/08/2005 9:04:04 AM PST by EX52D ((I have shifted to "Christmas Survival Mode"))
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To: rlmorel

Watch the radical arabs buy the Sony music catalog just to lock it up and deprive western culture of one of it's huge sources of commerical music.


32 posted on 12/08/2005 9:04:29 AM PST by Rebelbase (Food stamps, section-8, State paid Child support, etc. pay more than the min. wage.)
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To: EX52D

You are right. I forgot about the dangle baby.


33 posted on 12/08/2005 9:05:02 AM PST by babaloo
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To: COUNTrecount
Future Bahrain Headline: Michael Jackson former American pop star and pedophile, lost his nose today when a camel he developed a friendship with, swallow it and ran off...
Jackson was seen limping and holding his face and was reported to have said," mmfiffose,mmfiffose" before treated with tranquilizers and retiring to his now short lived stay at the princes palace.


Doogle
34 posted on 12/08/2005 9:05:18 AM PST by Doogle (USAF...7thAF ..4077th TFW...408th MMS..Ubon Thailand.."69",,Night Line Delivery..AMMO)
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To: babaloo

It's so sad that those kids will never have to opportunity to lead a normal life.


35 posted on 12/08/2005 9:06:27 AM PST by EX52D ((I have shifted to "Christmas Survival Mode"))
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To: COUNTrecount

let him rot.


36 posted on 12/08/2005 9:07:01 AM PST by sit-rep (If you acquire, hit it again to verify...)
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To: EX52D

Sadly, they have already been scarred for life, whatever their future situations may be.


37 posted on 12/08/2005 9:11:05 AM PST by F.J. Mitchell (Okay, bring our troops home. But don't feign suprise when the terrorists tag along.)
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To: F.J. Mitchell

I agree with you there...poor kids.


38 posted on 12/08/2005 9:12:35 AM PST by EX52D ((I have shifted to "Christmas Survival Mode"))
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To: COUNTrecount
I have the answer for Jacko: become a Muslim. Yea, right, that'll fix all his problems.

/sarc

39 posted on 12/08/2005 9:12:39 AM PST by manwiththehands ("Attack (Democrats) until they stop twitching and then attack some more." -J. Peter Mulhern)
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To: COUNTrecount

"Michael will be homeless - a houseguest of the prince [of Bahrain],"

Somehow being the houseguest of royalty isn't quite "homeless" in any meaningful sense of the word.

Besides, he's got plenty of fame to cash in on yet.


40 posted on 12/08/2005 9:14:07 AM PST by Pessimist
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To: HamiltonJay
pocket a cool 100 Million after taxes

That wouldn't last him six months!

41 posted on 12/08/2005 9:14:51 AM PST by 6ppc
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To: COUNTrecount
Michael,

Lose the entourage, hire a respectable accountant and follow his advise, move into a modest 6 bedroom ranch house in AZ, continue to write music and try to live comfortably on your remaining wealth.

My $0.02

42 posted on 12/08/2005 9:19:57 AM PST by Smedley
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To: Walkingfeather
If the beatles music catalog's is worth 1 billion.

Right there you're already off the track. The article cites "some experts" as the source for that number. Feh. A more realistic number is half that. Furthermore, Jackson only owns half of the rights under a joint venture with Sony. So his real stake is maybe worth $200-$250 million--just about what the loan was. The whole "Michael Jackson owns the Beatles Catalog" thing has always been a bit of a sham.

43 posted on 12/08/2005 9:22:04 AM PST by Heyworth
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To: COUNTrecount

I'm wondering when the "Reverend" Jackson will come forth and help poor whacko out. Oh wait...... that'll happen when pigs fly.


44 posted on 12/08/2005 9:27:41 AM PST by mslee
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To: COUNTrecount

So MJ owes Bank of America $270M. Sounds like Bank of America is in more trouble than MJ. I wouldn't want to be the guy at B of A who has to explain writing off that "bad debt".


45 posted on 12/08/2005 9:29:58 AM PST by wreckedangle
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To: InsureAmerica
life can chew you up and spit you out, man....

Just like Michael does little boys.

Well, at least the prince can afford to keep him as a house pet.

So9

46 posted on 12/08/2005 9:31:20 AM PST by Servant of the 9 (Trust Me)
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To: Smedley

See, now you're talking sense. We can have none of that.


47 posted on 12/08/2005 9:39:09 AM PST by farlander
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To: ~Kim4VRWC's~; A CA Guy; Amelia; ArmstedFragg; aruanan; BigSkyFreeper; bannie; blondee123; ...

Jacko Pity Alert!


48 posted on 12/08/2005 9:40:25 AM PST by Howlin
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To: Walkingfeather
My guess is that the bankers will repossess it, sell it to a crony for 100 million dollars, Jacko will still owe 170 million dollars, and the guy who buys it will resell it for the actual value of the music catalog to one of the multinationals. Lions don't give the antelope a good deal. They're going to do to him what he's been doing to little boys.
49 posted on 12/08/2005 9:42:27 AM PST by Richard Kimball (Tenure is the enemy of excellence.)
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To: Walkingfeather; HamiltonJay

All proceeds beyond the amount needed to repay the loan, interest, and lenders' legitimate costs associated with collecting, will go to Jackson. Seller may sell the assets at a little less than market, due to having the right to make itself whole reasonably quickly, but there won't be much discount. Plenty of bidders will surface for both these assets, and by selling at unreasonably low prices, the lender would be opening itself up to huge, and likely successful, lawsuits for the difference between sale price and reasonable market price. Jackson will be very rich for a while, but in his condition, it won't take him long to run through the $800 million or so.


50 posted on 12/08/2005 9:44:16 AM PST by GovernmentShrinker
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