Michael Jackson Reportedly Owed $500 Million In Debt At His Time Of Passing

Michael Jackson

Michael Jackson Reportedly Owed $500 Million In Debt At His Time Of Passing

Music icon Michael Jackson was swimming in debt prior to his death.

Court documents reportedly revealed that the King of Pop owed more than $500 million to creditors when he passed away over 15 years ago.

Michael Jackson

Details about Michael Jackson’s pre-death finances recently surfaced, as his estate executors are reportedly attempting to work out deals to pay off more than 65 reported creditors. His estate handlers wrote in a recent motion to the court, seeking approval for their payback proposal:

“At the time of Michael Jackson’s death, Michael Jackson’s most significant assets were subject to more than $500 million of debt and creditors’ claims, with some of the debt accruing interest at extremely high interest rates, and some debt in default.”

They continued:

“The Executors were able to renegotiate and restructure financing arrangements that existed at the time of Michael’s death, at substantially reduced interest rates, enabling the Estate to avoid the loss of any assets to the lenders and ultimately to satisfy the encumbrances that existed at the time of Michael’s death.”

Additionally, the legal professionals alleged that reimbursements needing payback include “legal, negotiating and various other operating expenses,” as well as settling “more than half a dozen lawsuits pending worldwide.” It’s noted that between July and December 2018, several law firms billed Jackson for over $3.5 million in legal fees for services rendered during that time. If you recall, the “Billie Jean” artist was in the middle of preparing for his farewell This Is It Tour when he tragically died of cardiac arrest, caused by “acute propofol intoxication.”

The report notes that Jackson’s untimely demise left his estate financially liable for $40 million to the tour promoter, AEG. Closing their proposal, his account executors added:

“Although the Executors have eliminated the Estate’s debt, have resolved virtually all of the creditors’ claims and litigation, and have successfully solidified the MJJ business as a significant entity in the music industry, there remain challenging business, tax and legal issues that the Executors and their counsel continue to deal with,”

It has not been reported that a judge has ruled on the matter.

[VIA]

Thoughts? Leave them for us in the comments section below!