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Michael Jackson's Estate Reveals Shocking USD 500 Million Debt Before His Death; Report
Find out about Michael Jackson’s staggering USD 500 million debt before his death, which was attributed to extravagant spending.
Michael Jackson aka the King of Pop has been revealed to be under a debt of USD 500 Million before his death. The revelation shocked many as, despite Jackson's successful career, he ended up burying himself in multi-million debt. The main reason behind Michael Jackson’s financial turmoil was linked to his careless spending, most of which was invested in jewelry.
How did Michael Jackson end up with USD 500 Million in debt at the time of his death
Michael Jackson died at the age of 50, on June 25, 2009, at his home in Los Angeles of a cardiac arrest, induced by acute propofol intoxication. The rockstar was reported to be piled up with over USD 500 million in debt, as per the recent court documents of June 21, retrieved by PEOPLE.
As per the Los Angeles Times, Jackson ended up with so much debt because of his thoughtless spending. The publication reported the court documents from Jackson's court trial in 2013 where it was revealed that Jackson wasted lots of money on gifts, travel, art and furniture, but his major expense was set on jewelry. "He spent a lot of money on jewelry. He was tapped out," the certified public accountant William R. Ackerman stated.
Back in 1998, the King of Pop had collected a debt of USD 140 million. Between June 2001 to June 2009, this amount was increased by USD 170 million. Along with these mounting debts, Jackson also had a rising interest in these amounts.
Additionally, the New York Times reported that Michael Jackson took a loan of USD 270 million from Bank of America for his song catalog in collaboration with The Beatles. Before his death, Jackson was going to kick start his much anticipated, This is It concert tour in London. But after his death, his estate was further estranged by an additional USD 40 million to cover up the cost of the tour promoter, AEG Live.
How did Michael Jackson’s estate pay off his loan
Jackson reportedly owned over 65 creditors at the time of his death, with over half of a dozen pending cases throughout the globe. As per the petition despite being on the verge of bankruptcy the estate managed to negotiate terms with creditors and restructure financial arrangements.
"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 read.
The petition further added that the executioners were able to settle the majority of the creditor's claims and litigations, but are still left with few business, tax and legal issues. Now the Michael Jackson estate has reported a worth of USD 2 billion. The estate was passed down to Michael Jackson’s three kids: Prince, Paris, and Bigi.
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