Michael Jackson Died $400 MILLION In Debt
Michael Jackson Died $400 MILLION In Debt
6 minutes ago by TMZ Staff
Michael Jackson owed more than $400 million to creditors when he died in 2009 ... this according to legal documents obtained by TMZ.
TMZ has obtained the first accounting that MJ executors filed ... showing exactly how much money Michael owed when he passed away on June 25, 2009 ... and how much the estate has made since -- and the numbers are astounding.
According to the documents, the estate has already made more than $310 million since MJ's death.
Documents show excecutors have already spent roughly $159 mil paying back various debts, income taxes and other expenses such as providing "uninterrupted support for Mrs. [Katherine] Jackson and Michael Jackson's children as Michael intended."
The estate has also paid for Katherine to make "substantial improvements" to the family's famous Havenhurst estate in Encino, CA.
Executors have also shelled out cash to "pay last illness and funeral and memorial service expenses."
In addition to the $400 million in debt -- MJ's estate had $40 million in liabilities to concert promoter AEG stemming from the "This Is It" tour ... which MJ was rehearsing for when he died.
The documents show the estate received more than 65 creditor's claims -- with some of the debt accruing interest at "extremely high" rates.
The MJ executors admit the estate still faces several lawsuits in multiple countries.
The executors also claim they have "successfully rebuilt and enhanced Michael Jackson's image" since they've been empowered to run the estate.
6 minutes ago by TMZ Staff
Michael Jackson owed more than $400 million to creditors when he died in 2009 ... this according to legal documents obtained by TMZ.
TMZ has obtained the first accounting that MJ executors filed ... showing exactly how much money Michael owed when he passed away on June 25, 2009 ... and how much the estate has made since -- and the numbers are astounding.
According to the documents, the estate has already made more than $310 million since MJ's death.
Documents show excecutors have already spent roughly $159 mil paying back various debts, income taxes and other expenses such as providing "uninterrupted support for Mrs. [Katherine] Jackson and Michael Jackson's children as Michael intended."
The estate has also paid for Katherine to make "substantial improvements" to the family's famous Havenhurst estate in Encino, CA.
Executors have also shelled out cash to "pay last illness and funeral and memorial service expenses."
In addition to the $400 million in debt -- MJ's estate had $40 million in liabilities to concert promoter AEG stemming from the "This Is It" tour ... which MJ was rehearsing for when he died.
The documents show the estate received more than 65 creditor's claims -- with some of the debt accruing interest at "extremely high" rates.
The MJ executors admit the estate still faces several lawsuits in multiple countries.
The executors also claim they have "successfully rebuilt and enhanced Michael Jackson's image" since they've been empowered to run the estate.
"For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places."
Comments
I wonder if $400 million is how much the hoax is costing Michael...
TMZ has added this last line to the article:
Like a batcave?
"For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places."I don't think he was ever in debt either, although he may have been in debt "on paper" to look like he was.
If Michael did die... and he was in debt... then, who cares??
I dont know why they go on and on about this debt!!!
You cant take it with you when you die... so, actually, Michael played it the best way. He made a shed load of money and he spent it ALL (and gave it to charity).
Live your life when you are alive. Money is there to enjoy and use. No use when you are cold in a coffin.
"For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.""successfully rebuilt and enhanced Michael Jackson's image" Hmmmmm, is Michael having more plastic surgery or something ??
Opinions.... ?
this must be BS . <!-- s:? -->:?<!-- s:? -->
MJ probably had some loans outstanding, maybe some were due maybe not, but looking at the value of his assets, I do not think it was as bad as media use to report it.
yeah why did they change the headline? TMZ is reading our posts here and decided to change it? or Michael decided to change it for whatever reason? it's interesting.
That is that of the " last illness" <!-- s:?: -->:?:<!-- s:?: -->
Creditors care. Even if person dies, there is a contract and valuable estate to pay off debts. That is how it works. There are secure and non secure creditors. So, secure creditors can take assests to satisfy debts. There is no way they say: "Ok fine, he died and we forget our debts". No way! Therefore, Estate makes money and pays debts, just like Michael would do if he would have not been behind the scene.
It is definitely possible. From shareholders perspective debt is actually often better than their own money. For an enterprise debt is more advantageous than own funds, as the cost of debt (interest) is tax-deductible, unlike cost of own sources. So, if the company is profitable and pays taxes, then the interest on debt decreases the tax bill. Plus, what I think was also very important is that by getting debt, you are not giving ownership to the company, in case of MJ - to his assets.
Thanks for the explanation. <!-- s:) -->:)<!-- s:) -->
Hint.
8+3+6+4+2+1+1= 25=7 <!-- s
Who are they ? In this area nobody can know for sure without acces to all the financials.
If he faked his death why can't we believe he faked his financials too? It's way much more easy to invent some debts.
But the way the article is written leaves the impression that Michael faked his death to escape debts or to make enough money to cover them and to restore his image too.
Since MJ "died" he, the MJ estate, is facing creditors who have been abusing Michael making up bills with too many ceros.
Michael is getting his economy in order and is being helped out by professionals.