Shocking new court documents have revealed that the singer Michael Jackson was over $500 million in debt when he died back in 2009 at the age of 50.
Jackson Owed Over $500 Million
Court documents that were obtained by People Magazine showed that at the time of his death, Jackson owed money to more than 65 creditors.
“At the time of Michael Jackson’s death, Michael Jackson’s most significant assets were subject to more than $500 million of debt and creditors’ claims, with some of the debt accruing interest at extremely high interest rates, and some debt in default,” the filing stated.
Jackson died of cardiac arrest caused by “acute propofol intoxication” on June 25, 2009. At the time, he was middle of preparing for his “This Is It” residency. This only put more strain on his finances.
After Jackson’s death, his estate was left financially liable for $40 million to the tour promoter, AEG. The new petition is asking that money from Jackson’s estate be used for reimbursement stemming from 2018. The filing states that this reimbursement includes “legal, negotiating and various other operating expenses.”
Jackson Was Facing Over ‘Half A Dozen Lawsuits’
The petition goes on to say that at the time of his death, Jackson had “more than half a dozen lawsuits pending worldwide.”
“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,” it adds.
Multiple firms are seeking over $3.5 million in legal fees for services rendered between July and December of 2018.
“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,” reads the filing. “The Executors have faced extraordinarily challenging circumstances.”
Related: Michael Jackson Reportedly Paid A Voodoo Chief $150k To Curse Steven Spielberg
Jackson Was Trying ‘To Clean Up His Finances’
Before his death, Jackson was reportedly trying to fix his dire financial situation.
“He wanted people to see his work and not just talk about his lifestyle,” Randy Phillips, the former CEO of AEG Live, told Rolling Stone in 2009. “Michael was a very smart marketing person. People say he was feeble and manipulated, but he was powerful and a manipulator. He was ready.”
“He wanted to clean up his finances,” Phillips continued, going on to say that Jackson “was ready to stop living like a vagabond and settle down and earn money again.”
The world was stunned by Jackson’s death in 2009. Afterwards, there was a memorial service for Jackson at the Staples Center. It was watched by an estimated 2.5 billion people, according to The New York Post.
Later, in 2011, Jackson’s physician Dr. Conrad Murray was found guilty of involuntary manslaughter. A court found that he recklessly doped up Jackson with dangerous levels of the anesthetic propofol and other sedatives. Murray was subsequently sentenced to four years in prison.
Jackson’s legal team has yet to respond to the latest legal petition.
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