Late king of pop, Michael Jackson was in $500 million debts at time of his death

Michael Jackson was in over $500 million debt at the time of his death in 2009.

 

 

According to People, the King of Pop owed money to more than 65 creditors when he died at age 50 from cardiac arrest, according to court documents filed on Friday, June 21. 

 

 

The documents include a petition from estate executors seeking back pay from 2018, relating to the late singer’s now $2 billion estate.

 

 

The reimbursement includes ‘legal, negotiating and various other operating expenses’ over the last six years, according to the outlet.  

 

 

The new petition comes after executors’ attorney John Branca asserted that Jackson’s estate was burdened with debt and nearly bankrupt at the time of his death in a March court filing.

 

 

 

The Thriller hitmaker had ‘more than half a dozen lawsuits pending worldwide’ and more than ’65 creditors’ claims were filed in the Estate spawning additional lawsuits, of which several resulted in litigation,’ the petition reads, per the outlet. 

 

 

‘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 continues. 

 

 

As stipulated by the agreement with Michael Jackson’s children, Paris, Prince, and Bigi, who are the beneficiaries of his estate, the probate court oversees the estate’s financial matters. 

 

 

The new filing states that every six months, the attorneys managing the estate must seek court approval to receive 30% of their compensation, while they retain the remaining 70%.

 

 

From July 1 to Dec. 31, 2018, several firms collectively sought over $3.5 million in legal fees dating back six years through the petition. 

 

 

 

‘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,’ the petition reads, per People.

 

 

The petition follows a peak in the Jackson family’s dispute over Michael’s $2 billion estate in March.

 

 

Jackson’s son, Bigi, aka Blanket, 22, prevented his grandmother, Katherine Jackson, 93, from using the family’s money to fight an ongoing legal battle.

 

 

According to a report from TMZ, the pair recently battled an undisclosed issue in court. 

 

 

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