Skip to comments.Jacko racing to 270M ruin
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.
Boo Effing Hoo.
life can chew you up and spit you out, man....
What about the mortgage on his nose?
Just goes to show you can't borrow yourself to prosperity, no matter what your income...
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.
Maybe he'll turn into a country singer, he's got some good source material.
that's not really homeless, is it?
Good news. Child rapists should not own anything. But especially their freedom. Hopefuly someday that will be taken too.
sounds like paul has a good opportunity to get the beatle songs back
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!
Couldn't happen to a nicer pedophile.
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.
It's a win - win for everyone.
I would say that we all end up in the same financial condition when we depart this world.
good, then maybe the pdeophile and his whole stinking family will crash out of the infamous news cycle.
I think the "nose" was already repossessed.
He'll be dead within a year.
Or a nicer family of pedophile enablers.
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.
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.
It's cause he's bla.......uh that is cause he used to be bla.........
Three kids? When did the third one come along?
Very sad...doesn't he have 3?
What are we supposed to feel sorry for him now?
That was the baby he "dangled" over the balcony.
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.
You are right. I forgot about the dangle baby.
It's so sad that those kids will never have to opportunity to lead a normal life.
let him rot.
Sadly, they have already been scarred for life, whatever their future situations may be.
I agree with you there...poor kids.
"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.
That wouldn't last him six months!
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.
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.
I'm wondering when the "Reverend" Jackson will come forth and help poor whacko out. Oh wait...... that'll happen when pigs fly.
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".
Just like Michael does little boys.
Well, at least the prince can afford to keep him as a house pet.
See, now you're talking sense. We can have none of that.
Jacko Pity Alert!
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.