(CTN News) – Michael Jackson, who died in 2009, was supposedly drowning in debt.
According to court documents published by People on Thursday, the King of Pop owed almost $500 million to 65 creditors before his death.
According to the petition, Michael Jackson had “more than half a dozen lawsuits pending worldwide” and “65 creditors’ claims were filed in the estate spawning additional lawsuits, of which several resulted in litigation,”
According to the new filing, Michael Jackson’s executors were able to “renegotiate and restructure financing arrangements,” including a deal with Sony for music publishing rights for multiple artists, at “substantially reduced interest rates” to avoid further losses and settle debts.
Sony acquired Sony/ATV for $750 million, which owned the rights to around 3 million well-known songs by artists such as John Lennon and Paul McCartney, David Bowie, and Taylor Swift.
Despite resolving those financial concerns, Michael Jackson’s estate is said to still owe a large sum of money because “there remain challenging business, tax, and legal issues that the executors and their counsel continue to deal with,” according to the petition.
The petition also reportedly mentions a potential final verdict on a victory in a 2021 legal battle against the IRS.
Michael Jackson’s three children, Prince (27), Paris (26), and Bigi Jackson (22), who are the beneficiaries of his estate, have been prevented from collecting funds from their trust until the IRS dispute is resolved.
Court Documents According to Page Six, the estate received a “note of deficiency” from a tax audit for undervaluing its assets, resulting in a $700 million tax and penalty bill.
However, a spokesperson for the estate previously downplayed what appeared in the filing, telling us, “In annual reports provided to the probate court, which are publicly available, anyone can see that Michael’s mother and children receive very substantial amounts of money to support them.
“The estate has a very cooperative relationship with Michael’s children and whenever they need anything, the estate works with them to ensure that they are very well taken care of, just as Michael would have wanted.”
Sony Music reportedly paid at least $600 million for the music superstar’s portfolio, which includes classics such as “Beat It” and “Billie Jean.”
According to the Los Angeles Times, Michael’s extravagant spending habits contributed to his high debt.
In the 2013 wrongful death trial of the “Smooth Criminal” singer, accountant William R. Ackerman testified that the singer spent a significant amount of money on charity, presents, travel, art, and furnishings.
During a 2003 interview with Martin Bashir, Michael revealed his spending habits, including a buying spree at an antique store in Las Vegas.
In March 2005, just three months before his death, prosecutors in his sex assault trial labeled him a “shopaholic” on the verge of bankruptcy.
