Yahoo Finance Michael Jackson Was A Half-Billion Dollars In Debt When He Died: Court Docs
Michael Jackson was in over $500 million in debt before his sudden death in 2009, according to new court documents obtained by HuffPost.
Though the King of Pop’s financial troubles had been reported on before, the extent of Jackson’s debt came to light in petition filed by the executors of his estate last Friday.
In a previous petition to the court filed in March, the executors of Jackson’s estate, attorney John Branca and music executive John McClain, stated that the late singer was overwhelmed with debt and on the verge of bankruptcy at the time of his death.
Friday’s filing focused on a court request to approve funds from the estate to be used to reimburse the executors’ attorneys for legal, negotiating and various other operating expenses that occurred in 2018.
The petition claims Branca and McClain, along with their lawyers, “have faced extraordinarily challenging circumstances” in sorting out Jackson’s assets but worked “promptly and decisively” to have much of the star’s debt “settled or disposed of” in the years since his passing.
The documents extensively detail how Branca and McClain were able to successfully navigate Jackson’s massive debt, which included $40 million owed to music promoter, AEG, for the London concert residency Jackson was preparing for in the months leading up to his death.
The day prior to Jackson’s passing, he had just completed a six-hour dress rehearsal for his “This Is It” residency.
He suffered a cardiac arrest, prompted by an overdose of the drugs propofol and benzodiazepine, and died at his rented mansion in Holmby Hills, Los Angeles, on June 25, 2009.
Friday’s documents go on claim that at the time of his death, Jackson was embroiled in “in a number of lawsuits pending in several states, including California, and several foreign countries,” and that he was subject to claims by “more than 65 creditors.”
Last Friday’s court filings contend that Jackson’s executors have since “resolved virtually all of the creditors’ claims and litigation,” and “have successfully enhanced” the “Thriller” singer’s “image and legacy” for the benefit of his beneficiaries, which include his three children, Paris Jackson, Prince Jackson and Bigi Jackson.
His estate is currently valued at over $2 billion, according to the March brief to the court.
While those matters have reportedly been resolved, the petition says “there remain challenging business, tax and legal issues” which will require continued legal work by Jackson’s executors.
