Colony Capital LLC have bought the loan held by Fortress Investment Group on Michael Jackson's Neverland, as such the auction has now been cancelled.
Jackson issued a quote to the media via a spokesman:
"I am pleased with recent developments involving Neverland Ranch and am in discussions with Colony and Tom Barrack with regard to the ranch and other matters that would allow me to focus on the future".
Why does he want to keep the place, given that he has effectively abandoned it?
Colony are now negotiating payment terms for the $23.5M loan with Jackson.
Showing posts with label Fortress Music Trust. Show all posts
Showing posts with label Fortress Music Trust. Show all posts
Monday, May 12, 2008
Monday, March 17, 2008
Neverland Update
It seems that Michael Jackson's reprieve from selling Neverland at auction this month, may in fact be only a temporary reprieve rather than a final solution.
Julie Wagner of Financial Title Company of San Francisco, which filed the default papers, said the auction has been postponed until May 14 by "mutual agreement".
Julie Wagner of Financial Title Company of San Francisco, which filed the default papers, said the auction has been postponed until May 14 by "mutual agreement".
Friday, March 14, 2008
Victory Snatched From The Jaws of Defeat?
Michael Jackson has, at the eleventh hour, managed to stop the auction of Neverland by agreeing a deal with Fortress (the holders of a $24M charge over Neverland).
Jackson's lawyer, L. Londell McMillan, told The Associated Press that Jackson has worked out a confidential agreement with Fortress Investment Group LLC allowing him to retain ownership of the estate.
However there are two unaswered, and obvious questions.
Time will tell.
Jackson's lawyer, L. Londell McMillan, told The Associated Press that Jackson has worked out a confidential agreement with Fortress Investment Group LLC allowing him to retain ownership of the estate.
However there are two unaswered, and obvious questions.
- Given that Jackson is in dire financial straits, he hasn't stepped foot in Neverland for some considerable period of time and that the place is shuttered and rotting how long will he keep it?
- More importantly, why does he want to keep it?
Time will tell.
Thursday, March 06, 2008
NINJA Mortgage
CNN reported a week ago that one of their sources in Michael Jackson's camp is confident that the auction of Neverland will not go ahead, because Jackson will find the money to pay off the $24M debt.
Quote:
"Michael Jackson's ranch is not going to be auctioned off at the courthouse.
The financing is all being worked out.
There are plenty of lenders willing to work with him. The real estate market is very bad right now and Jackson is being affected just like many other Americans."
The credibility of the source's faith in Jackson being able to refinance his debt remains to seen. However, it is fair enough to allude to the shambolic property market.
This has been brought about by the greed an stupidity of the banks lending money to people who could never hope to pay their debts off, colloquially known as NINJA mortgages (no income, job or assets).
A pretty fair description of the situation in which Jackson now finds himself in.
Quote:
"Michael Jackson's ranch is not going to be auctioned off at the courthouse.
The financing is all being worked out.
There are plenty of lenders willing to work with him. The real estate market is very bad right now and Jackson is being affected just like many other Americans."
The credibility of the source's faith in Jackson being able to refinance his debt remains to seen. However, it is fair enough to allude to the shambolic property market.
This has been brought about by the greed an stupidity of the banks lending money to people who could never hope to pay their debts off, colloquially known as NINJA mortgages (no income, job or assets).
A pretty fair description of the situation in which Jackson now finds himself in.
Friday, February 29, 2008
Taxes
Even if Michael Jackson is successful in selling Neverland, at an auction next month, he may well be liable for tax on the sale.
On the assumption that the property is sold for around $25M, given that he paid around $14M for it, there is a capital gain of $10M on which tax of around $5M will be payable.
Jackson will discover the truth of that old saw:
"There are only two certainties in life, death and taxes."
On the assumption that the property is sold for around $25M, given that he paid around $14M for it, there is a capital gain of $10M on which tax of around $5M will be payable.
Jackson will discover the truth of that old saw:
"There are only two certainties in life, death and taxes."
Thursday, February 28, 2008
In Denial
It seems that Michael Jackson is in denial about the dire state of his finances.
Jackson's lawyers are desperately trying to refinance the $25M loan on Neverland, due to go to auction soon, so that he can keep it.
Given that he no longer lives there, why on earth does he want to keep it and waste more money on further loans?
Jackson's lawyers are desperately trying to refinance the $25M loan on Neverland, due to go to auction soon, so that he can keep it.
Given that he no longer lives there, why on earth does he want to keep it and waste more money on further loans?
Wednesday, February 27, 2008
Jackson To Lose Neverland
It seems that, as predicted, Michael Jackson will lose Neverland unless he pays nearly $25m that is owed to Fortress.
Unless he pays the three months' arrears on the property, it will go to auction on the 19th of March.
The auction will include the house and everything on the estate including "all ferris wheels, carousels, merry-go-round type devices... and all amusement ride equipment and facilities of every kind or nature".
Who on earth, in their right mind, would buy this?
Unless he pays the three months' arrears on the property, it will go to auction on the 19th of March.
The auction will include the house and everything on the estate including "all ferris wheels, carousels, merry-go-round type devices... and all amusement ride equipment and facilities of every kind or nature".
Who on earth, in their right mind, would buy this?
Monday, February 11, 2008
Jackson Pays The Taxman
Michael Jackson has seemingly had at least the common sense to pay some outstanding tax to the taxman.
It is reported that he has finally settled the outstanding $600K property tax debt on Neverland.
Jackson has paid off a state tax lien on the property, according to Santa Barbara County records.
The settlement amount included penalties and fees, but does not cover the $23M that he owes Fortress Investment after defaulting on loans he took out on Neverland.
Fortress Investment is two weeks overdue the time that it can begin foreclosing on the property.
It is reported that he has finally settled the outstanding $600K property tax debt on Neverland.
Jackson has paid off a state tax lien on the property, according to Santa Barbara County records.
The settlement amount included penalties and fees, but does not cover the $23M that he owes Fortress Investment after defaulting on loans he took out on Neverland.
Fortress Investment is two weeks overdue the time that it can begin foreclosing on the property.
Friday, February 01, 2008
Neverland Extension
Fox reports that Michael Jackson, facing foreclosure on Neverland for $23M secured by Fortress Investments, may have obtained an extension on that foreclosure.
Seemingly, according to Fox, Ron Burkle (big in groceries) may have interceded with Fortress and persuaded them to grant an extension.
How long Jackson has though is not clear.
Seemingly, according to Fox, Ron Burkle (big in groceries) may have interceded with Fortress and persuaded them to grant an extension.
How long Jackson has though is not clear.
Wednesday, January 23, 2008
Debt
The Sun reports that Wycelf Jean is claiming that Michael Jackson owes him a considerable amount of money.
The alleged debt goes back to when they worked together 10 years ago.
Jean is quoted:
"Michael owes me money. After Mike did Blood On The Dance Floor, I went into the studio with him. We did a couple of sessions. When I'm in the studio I'm very specific. I'm very tough in the studio.
It was a long time ago now, but I still haven't been paid. Mike knows the money he owes me. I just wish he'd get in touch."
It is also crunch time for Jackson in respect of his debt owed to Fortress, secured on Neverland.
The alleged debt goes back to when they worked together 10 years ago.
Jean is quoted:
"Michael owes me money. After Mike did Blood On The Dance Floor, I went into the studio with him. We did a couple of sessions. When I'm in the studio I'm very specific. I'm very tough in the studio.
It was a long time ago now, but I still haven't been paid. Mike knows the money he owes me. I just wish he'd get in touch."
It is also crunch time for Jackson in respect of his debt owed to Fortress, secured on Neverland.
Monday, January 14, 2008
Going Going Gone
Fox reports that Michael Jackson's Neverland may be vulnerable to foreclosure this Friday (18 January).
It seems that there is no interest from anyone in helping Jackson refinance his $23M loan, secured on Neverland, held by Fortress Investments.
If Neverland is not refinanced, Fortress can foreclose and sell the ranch at auction.
It seems that there is no interest from anyone in helping Jackson refinance his $23M loan, secured on Neverland, held by Fortress Investments.
If Neverland is not refinanced, Fortress can foreclose and sell the ranch at auction.
Wednesday, November 07, 2007
Refinancing
Fox reports that Michael Jackson has edged forward in his battle to remain vaguely solvent.
His business partners, Sony, are helping him refinance his $300M loan with Fortress Investment Group. In theory, if the deal goes through, Barclays will buy the loan.
However, this does not cover the separate debt of $23M with Fortress held on Neverland.
Therefore he still faces losing Neverland, that being said he doesn't live there anymore.
Does it therefore really matter to him whether Neverland is lost or not?
His business partners, Sony, are helping him refinance his $300M loan with Fortress Investment Group. In theory, if the deal goes through, Barclays will buy the loan.
However, this does not cover the separate debt of $23M with Fortress held on Neverland.
Therefore he still faces losing Neverland, that being said he doesn't live there anymore.
Does it therefore really matter to him whether Neverland is lost or not?
Monday, October 29, 2007
Jackson To Lose Neverland?
Reality may finally be catching up with Michael Jackson, as his Neverland ranch is now under serious threat of repossession.
He has 90 days to pay back a $23M loan plus interest, or he will lose Neverland and other property.
Jackson has reportedly defaulted on the $23M loan with Fortress Music Trust, which he was to have settled by October 12.
A notice of default was filed in Santa Barbara Country on October 22.
The value of Neverland is reported to be $17M. However, any sensible person buying it would undoubtedly have to spend a large amount of money removing the amusements and other assorted paraphernalia.
He has 90 days to pay back a $23M loan plus interest, or he will lose Neverland and other property.
Jackson has reportedly defaulted on the $23M loan with Fortress Music Trust, which he was to have settled by October 12.
A notice of default was filed in Santa Barbara Country on October 22.
The value of Neverland is reported to be $17M. However, any sensible person buying it would undoubtedly have to spend a large amount of money removing the amusements and other assorted paraphernalia.
Wednesday, October 18, 2006
Jackson Sues...Again!
Seemingly, instead of writing music, Michael Jackson's new occupation is that of "professional litigant".
Jackson has now decided to sue his former lawyers for conspiring to force him into bankruptcy.
Jackson has accused Los Angeles law firm Ayscough and Marar of conspiring with other lawyers, who represented him in the past, to force him into involuntary bankruptcy.
Jackson also cited claims that his former lawyer, Brent Ayscough, threatened to leak confidential information about him to the press, broke rules of professional conduct and committed acts of negligence and malpractice.
Earlier this year, Ayscough sued Jackson for $216K he claimed that he was owed in unpaid fees.
Jackson is also busy with a $48M lawsuit brought by Darien Dash, the cousin of Damon Dash. Dash claims he has Jackson's signature on a document promising to pay him a 9% fee for arranging financing for a $275M loan in 2004, which is held by Fortress Investments.
Clearly Jackson will have some trouble finding the time to write any more music in the coming months.
Jackson has now decided to sue his former lawyers for conspiring to force him into bankruptcy.
Jackson has accused Los Angeles law firm Ayscough and Marar of conspiring with other lawyers, who represented him in the past, to force him into involuntary bankruptcy.
Jackson also cited claims that his former lawyer, Brent Ayscough, threatened to leak confidential information about him to the press, broke rules of professional conduct and committed acts of negligence and malpractice.
Earlier this year, Ayscough sued Jackson for $216K he claimed that he was owed in unpaid fees.
Jackson is also busy with a $48M lawsuit brought by Darien Dash, the cousin of Damon Dash. Dash claims he has Jackson's signature on a document promising to pay him a 9% fee for arranging financing for a $275M loan in 2004, which is held by Fortress Investments.
Clearly Jackson will have some trouble finding the time to write any more music in the coming months.
Tuesday, August 01, 2006
Another Day Another Trial
It seems that Michael Jackson has some form of addiction to court cases, as yet another one is appearing in his already busy court schedule.
Jackson is now being sued for legal fees he allegedly owes Ayscough & Marar, an LA law firm, who claim that Jackson owes them $200K for their services in 2005.
Attorney Brent Ayscough claims that his firm was hired by Jackson, to provide legal services during his child molestation trial. One of the cases that the firm were allegedly asked to oversee was the suit brought against Jackson by former business associate Marc Schaffel.
Ayscough and Marar's lawyers claim that they were paid on time until mid 2005, when Jackson's legal fees were paid out by his trial lawyer Thomas Mesereau's company.
They claim that the money paid to Mesereau was to be spread around several law firms, who were all working for Jackson. However, Ayscough & Marar claim that they haven't received that money. Mesereau & Yu are not named as defendants in the case.
The lawsuit filed by Ayscough & Marar also details some of Jackson's debts; including $300M to Fortress Investment Group and $1.6M to his brother Randy.
If the allegations are true, it seems that the lesson to be learnt here is that when working for Jackson demand payment in advance.
Jackson is now being sued for legal fees he allegedly owes Ayscough & Marar, an LA law firm, who claim that Jackson owes them $200K for their services in 2005.
Attorney Brent Ayscough claims that his firm was hired by Jackson, to provide legal services during his child molestation trial. One of the cases that the firm were allegedly asked to oversee was the suit brought against Jackson by former business associate Marc Schaffel.
Ayscough and Marar's lawyers claim that they were paid on time until mid 2005, when Jackson's legal fees were paid out by his trial lawyer Thomas Mesereau's company.
They claim that the money paid to Mesereau was to be spread around several law firms, who were all working for Jackson. However, Ayscough & Marar claim that they haven't received that money. Mesereau & Yu are not named as defendants in the case.
The lawsuit filed by Ayscough & Marar also details some of Jackson's debts; including $300M to Fortress Investment Group and $1.6M to his brother Randy.
If the allegations are true, it seems that the lesson to be learnt here is that when working for Jackson demand payment in advance.
Thursday, April 13, 2006
Jackson Tries To Stave Off Bankruptcy
Michael Jackson is allegedly close to cutting a deal that would stave off his imminent bankruptcy.
It is reported that he will agree to give up a part of his a song catalogue that includes Beatles' hits to the Sony Corporation, it is estimated that Jackson's share is worth around $500M.
Jackson used his stake in the catalogue as part of the collateral for $270M in loans from Bank of America. Bank of America then sold the loans in 2005 to Fortress Investment Group, a New York-based investment company that buys distressed debt.
As part of the new agreement, Fortress has agreed to provide a new $300M loan and reduce the interest payments.
Jackson has reportedly agreed to provide Sony with an option to buy half of his stake at a set price.
We shall see.
It is reported that he will agree to give up a part of his a song catalogue that includes Beatles' hits to the Sony Corporation, it is estimated that Jackson's share is worth around $500M.
Jackson used his stake in the catalogue as part of the collateral for $270M in loans from Bank of America. Bank of America then sold the loans in 2005 to Fortress Investment Group, a New York-based investment company that buys distressed debt.
As part of the new agreement, Fortress has agreed to provide a new $300M loan and reduce the interest payments.
Jackson has reportedly agreed to provide Sony with an option to buy half of his stake at a set price.
We shall see.
Wednesday, December 21, 2005
Debt Default Negotiations
Lawyers for Michael Jackson and Fortress Investment Group, Jackson's creditor, are in talks to keep Jackson from defaulting on $200M of loans secured on his 50% holding in the Beatles' song catalogue (worth $500M).
Jackson technically defaulted on the loans yesterday.
Brent Ayscough, a lawyer for Jackson, said that representatives for both parties were working to renegotiate terms of the loans; to give Jackson more time to avoid default.
Jackson technically defaulted on the loans yesterday.
Brent Ayscough, a lawyer for Jackson, said that representatives for both parties were working to renegotiate terms of the loans; to give Jackson more time to avoid default.
Monday, December 19, 2005
On The Edge of Ruin
Michael Jackson faces losing Neverland and his share of the Beatles song catalogue this week, unless he pays some of the money that he owes Fortress Investments.
Fortress Investments are reportedly going to move against Jackson's assets tomorrow, unless he comes up with repayments to cover a loan worth £152M that it acquired from Bank of America last May after he failed to make a $350K repayment the previous month.
Fortress Investments are reportedly going to move against Jackson's assets tomorrow, unless he comes up with repayments to cover a loan worth £152M that it acquired from Bank of America last May after he failed to make a $350K repayment the previous month.
Friday, December 09, 2005
Jackson Faces Foreclosure
It is reported that Michael Jackson has two weeks two to fend off a $270M foreclosure, or face losing Neverland and his Sony Beatles music catalogue.
His "friends" say that he faces ruin because he listened to the wrong people.
Evidently Jackson took out two loans, one for $200M and the other $70M, which were secured on Neverland and the Beatles catalog.
It seems that he defaulted on the $70M loan in April, then worked out a payment plan with Fortress Investments. However, Jackson defaulted again in October and foreclosure will happen on December 20th.
Jackson has also reportedly failed to make payments on a $2.2M second mortgage he took out on his parents' mansion, which is also now facing foreclosure.
Given his financial predicament, it is hardly surprising that he is planning to re-release his old hits at the rate of one a week.
His "friends" say that he faces ruin because he listened to the wrong people.
Evidently Jackson took out two loans, one for $200M and the other $70M, which were secured on Neverland and the Beatles catalog.
It seems that he defaulted on the $70M loan in April, then worked out a payment plan with Fortress Investments. However, Jackson defaulted again in October and foreclosure will happen on December 20th.
Jackson has also reportedly failed to make payments on a $2.2M second mortgage he took out on his parents' mansion, which is also now facing foreclosure.
Given his financial predicament, it is hardly surprising that he is planning to re-release his old hits at the rate of one a week.
Wednesday, June 08, 2005
Money Troubles
Michael Jackson's trial has weighed heavily on his purse strings.
Whatever the verdict, it is likely that his career will have taken a very large knock back.
It remains to be seen as to what he will do, if he is acquitted. As such the question is being raised, by those in the music industry, as to whether he will have to sell his share of the Beatles' music catalogue.
Jackson bought the publishing rights to the catalogue for about $48M in the 1980's.
The ownership of the songs is split between Jackson and Sony Corporation.
Owen Sloane, an entertainment lawyer who was involved in the original 1985 deal, is quoted in the media as saying:
"I've heard the rumors he's trying to raise cash and Sony probably would have the right of first refusal and would be first in line to buy if he chose to sell".
Accountant John Duross O'Bryan testified for the prosecution at Jackson's trial that Jackson has borrowed approximately $200M against his holdings, and not paid his share of Sony's continuing investment.
It is reported that these loans, first provided by Bank of America, were sold in the past month to Fortress Investment Group.
It seems that, if Jackson is acquitted, he will have to find ways to earn money. A serious rebranding exercise is needed, coupled with a dramatic change of lifestyle.
Whatever the verdict, it is likely that his career will have taken a very large knock back.
It remains to be seen as to what he will do, if he is acquitted. As such the question is being raised, by those in the music industry, as to whether he will have to sell his share of the Beatles' music catalogue.
Jackson bought the publishing rights to the catalogue for about $48M in the 1980's.
The ownership of the songs is split between Jackson and Sony Corporation.
Owen Sloane, an entertainment lawyer who was involved in the original 1985 deal, is quoted in the media as saying:
"I've heard the rumors he's trying to raise cash and Sony probably would have the right of first refusal and would be first in line to buy if he chose to sell".
Accountant John Duross O'Bryan testified for the prosecution at Jackson's trial that Jackson has borrowed approximately $200M against his holdings, and not paid his share of Sony's continuing investment.
It is reported that these loans, first provided by Bank of America, were sold in the past month to Fortress Investment Group.
It seems that, if Jackson is acquitted, he will have to find ways to earn money. A serious rebranding exercise is needed, coupled with a dramatic change of lifestyle.
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