Okay... the kid on the left. Who's his daddy?
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.
True he'll lose a big chunk to taxes, but he'll still end up with a 9 figure chunk of change. The Fortress folks are experienced control-block distressed players, and are well equipped to handle (and predict) the complicating factors. It would be interesting to know what they paid for it, as that would give a very good clue as to what the ultimate sale price of the collateral will be. You can be sure they didn't buy these loans without some preliminary chats with serious buyers (at least for the Beatles catalog, California real estate is what it is).
Works the same way with small loans too. Default on your mortgage, and the mortgage holder can sell the house and make itself whole, but if there's money left over, it goes to the original homeowner.
Like my mother always said -- you never see a Brink's truck following a hearse to the cemetery. So true.
In the words of Diane Diamond "Be careful who you love" !
OK, now all I have to do is figure out who'll loan me $200 million. I got some ammo and old comic books as collateral...
I'm sure he'll have no problem supporting himself; baby-sitting will not be needed. He might, however, take a liking to camels....
The catch is that your collateral has to have enough value to more than cover the loan. Many people have had houses go the wrong way in market value, and when the bank foreclosed, it got the entire proceeds of the sale, wiping out the homeowner's original downpayment. Buy a house for $200,000, put down $40,000 of your own hard-earned money, market value goes down to $160,000, you can't make payments, bank forecloses, and you're out the house AND your $40,000. If you can play this the right way, you can get plenty rich with other people's money. Buy a house in a rising market with no money down (interest only mortgage), house goes up in value, you sell, and after paying off the mortgage, you have a colossal profit on no investment other than the monthly payments you made while living in the house. Risky game, though.
Jacksons "family" have always leeched off of HIM to support them in the style they wished to live. It is this family that bears a great deal of the blame for the condition of this pathetic soul. He was USED even by his own family because he was brining in the dough. I agree that the guy is basically trying to kill himself. He'll NEVER make another hit album again. He's a 44 year old HAS BEEN FREAK.
Okay... the kid on the left. Who's his daddy?
The whole family is a pack of parasites.
I often wonder what happened to the white father of Jacko's kids. Its apparent they arent Jacko's. His wife,-ex-wife , whatever ,is as nutty as a fruit cake. Now it seems the Nanny is running things. This man belongs in an institution somewhere not in Bahrain molesting more kids. Jacko needs to be locked away for his own good.
They leeched off him to their ultimate detriment. Had they intervened early on and gotten him help when he first showed signs of turning into a freak that may have stopped his slide. Then again, maybe nothing they could have done would have helped him avoid what he became.
Interesting how his selfish family are SUDDENLY concerned about his mental stability when their meal ticket is in financial jeopardy.
The Beatles collection may be worth a Billion all together, but my bet it is worth alot more song by song...
Shows what can happen when you hitch your wagon to a star...oops FALLEN star.
Who in their right mind would let MJ take out a loan on the family home when he has a total reputation for spending money like a shipload of drunken sailors???
The entire value of the Beatles catalog goes to the lender who is taking it for the non-payment. MJ put it up as collateral, and he has now lost it. Guess that gives Paul the chance to buy the catalog back from the lender.....
A friend of mine foreclosed on her ex for a sum of back alimony for less than $50K. She ended up with a piece of property worth over $1 million, which she also got with the other 2 mortgages. The net worth of the property was way over the $50K, but she kept it, refurbished it, and doesn't have to give him one red cent when or if she sells it. He gambled and lost. He was sure she would NEVER foreclose, and he bragged about that to all who would listen to him.
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"."
I'm at a loss to see how there will be a debt to write off. The catalog has a value, and until it is sold, one cannot call it a bad debt. There is a good chance the Bank will make a profit on the deal, selling the catalog.
Not a chance. Sony/BMG will never allow that to happen. They are a far too valuable asset to lose. Sony/BMG has more resources than Sir Paul and will outbid any attempt by him to reclaim his songs.
Well, at least it's not because he's a child-molesting @$$hole
All his assets will get auctioned off and if there is anything left over it will go to Mr. Whackjob's pocket. There it won't last long till his jackals, handlers, have cleaned him out.
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