Jacko racing to 270M ruin

NY Daily News ^ | Dec. 8, 2005 | MICHELLE CARUSO

[Heyworth]

My guess is that the bankers will repossess it, sell it to a crony for 100 million dollars,

I think that Sony (which co-owns the rights under a joint venture with Jackson) has the right to match any offer.

[Revolting cat!]

Would you catch a falling star...

[NormsRevenge]

Life is so unfair. (sniffle)

[Xenalyte]

Rwaramba ping! I have no idea how to begin pronouncing that.

[Revolting cat!]

Once Tooky fries next Tuesday, all his fans now sending big checks to San Quentin (you bet they are!) can start sending them to another neverland instead!

[dmz]

Let's see.

He owes 270 million.
The Beatles catalog is worth (according to the article) as much a billion dollars.

I know I took the old math in school, but doesn't MJ have a pretty easy way out?

[quark]

The state of California has been trying to offer him a more permanent residence for many years. Quarters are a bit cramped, but the (formerly) rich white woman would get "three hots and a cot."

[Revolting cat!]

Rwaramba ping! I have no idea how to begin pronouncing that.

I don't know how either, but this is how they sing it in China:

Para bailar la bamba 
Para bailar la bamba 
Se necesita una poca de gracia...

etc, etc

[Tax-chick]

I tried it, but it sounded like I was about to spit out a mouthful of sludge!

[ken5050]

You're correct on the procedure, but there is more information that you may not have..

First, the value of the asset, say $1 billion, will be sharply discounted, by at least 15%, because another party owns the other 50%. IOW, there is no clear controll...it is "encumbered" and therefore worth less..

Next..it is believed that MJ has fradulently pledged the asset, and/or the stream of income from the asset, to cover other loans..

But the big problem for MJ is the tax consequences..when he aquired the asset it was for about $200 mill..so on his now 50% residual piece, he's looking at a capital gain of between $300 -$400 mill..A forclosure sale is still a sale, and the tax bill ..say $150 mill between the US and California..will be due, and the IRS and Cal will file liens on the transfer..MJ won't get a thin dime...

[MEG33]

Yeah..I'm all broken up. ;)

[devane617]

How can someone, even a stupid someone, lose billions probably? Some things in life I will never understand.

[joylyn]

Seriously, I wouldn't be at all surprised if we hear that Jackson has become a Muslim.

[AppyPappy]

I know I took the old math in school, but doesn't MJ have a pretty easy way out?

He won't sell it. The bank will eventually foreclose and we'll all go to court.

[bert]

..His creditors will have a hard time collecting now....

They can forclose on the assets pledged.

He probably has other hidden assets offshore where the family can't get at them. He has to stay in the bunker thill the forclosure is over.

[amigatec]

I have the answer for Jacko: become a Muslim.

Then he can molest little boys legally.

[CommandoFrank]

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

Huuummmm... a lesson for GW and the congress?

[Enduring Freedom]

Damn those tax-cutting Republicans!

[Carolinamom]

Let's see....

"...he has listened to the wrong people"
"he's in "the clutches of handlers"
"Grace [nanny] has been calling the shots"
"Jackson defaulted on the smaller {$70 million] loan"
"Jackson has failed to make his payment [$200 million loan] and defaulted in October"
"Jackson has failed to make payments on a $2.2 million 2nd mortgage"

Is this middle-aged "man" incapable of thinking for himself? Does he not know that he MUST pay bills or else...?

[gakrak]

What goes around comes around. Amen.