by Cedric ‘BIG CED’ Thornton
June 29, 2024
At the time of his death, the star’s ‘assets were subject to more than $500 million of debt and creditors’ claims,’ according to court documents
Recent court records have revealed that the “King of Pop,” Michael Jackson, had “more than $500 million of debt” when he died in 2009.
According to NBC News, the “Way You Make Me Feel” singer was preparing for a tour when he died at his Los Angeles mansion of acute propofol intoxication. Executors of his estate filed a petition detailing the financial bind Jackson was in Los Angeles County Superior Court on June 21. The popular icon died on June 25, 2009.
“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,” based on the paperwork filed.
He was about to embark on his “This Is It” tour right before he died. There was a 50-show commitment at London’s O2 Arena. His death left his estate with a $40 million debt to the tour promoter, AEG.
People reported that the shows were scheduled to take place from July 2009 to March 2010.
The executors for the estate, John Branca and A&R executive John McClain, and their attorneys, Jonathan Steinsapir and Saul Ewing, stated in a March 2024 filing that the estate was heavily in debt and on the verge of bankruptcy when the entertainer died. Now, the estate is valued at over $2 billion.
“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,” the petition said.
It was recently reported that there is a dispute between Michael Jackson’s estate and the Internal Revenue Service (IRS).
Executors of Jackson’s estate say that his mother, Katherine Jackson, and his three children, Paris, Prince, and Bigi, cannot receive their trust fund money until the estate resolves an ongoing dispute with the IRS. The estate filed on Tuesday, May 28, clarifying that while the beneficiaries can’t receive the funds, it does not impact the money they will be allocated once the dispute is settled.
Jackson’s mother and children still receive an allowance through the singer’s estate. Katherine is a life beneficiary who has received over $55 million since the singer’s 2009 passing.
