Michael Jackson's Estate Reveals Over $500 Million in Debts and Creditor Claims
Michael Jackson's estate faced over $500 million in debts and 65 creditor claims after his death in 2009. Despite ongoing lawsuits, the estate has since resolved most claims and debts.
At the time of his death in 2009, Michael Jackson's financial situation painted a grim picture, as revealed by a recent court filing. The filing, submitted by the pop superstar's estate in Los Angeles County Superior Court, disclosed that his debts and creditor's claims amounted to over $500 million.
Notably, Jackson owed approximately $40 million to the tour promoter A.E.G., shedding light on the substantial financial obligations he carried. This revelation underscores the extent of the financial challenges he faced in the twilight of his life.
Creditor Claims and Lawsuits
Moreover, the court filing detailed that 65 creditors asserted claims against the late singer posthumously, with some resulting in legal battles. Shockingly, it was noted that certain debts had accumulated "accruing interest at extremely high interest rates," compounding the financial strain on the estate.
In an effort to address the estate's financial obligations, the executors sought court approval for disbursement of approximately $3.5 million to multiple legal firms. This underscores the complexity and magnitude of the legal efforts required to manage the estate's affairs.
Resolving Debt and Claims
Despite the dire financial landscape outlined in the court filing, the estate's representatives, overseen by John Branca and John McClain, asserted that the estate's debts have been extinguished, and the majority of creditors' claims and associated litigation have been successfully resolved. This marks a significant milestone in the management of Jackson's complex financial legacy.
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