As expected, Michael Jackson has restructured his finances and it may lead to a sale of his half interest in the
MJ structured the deal with the help of Sony Corp., and it’s believed to include an option that could force him to sell his share. The total worth of the catalog is an estimated $1 billion.
No terms of the $325 million debt refinancing were revealed by his spokesman in Bahrain. However, Grahame Nelson of Qays H. Zubi Attorneys & Legal Consultants confirmed reports that an agreement was imminent. Jackson has been living in Bahrain since his acquittal on child molestation charges in California last year.
“Following negotiations with several leading financial institutions, Mr. Jackson has concluded refinancing with affiliates of Fortress Investment Group, the lender that currently holds secured debts that were previously held by Bank of America,” the statement said.
The Qays H. Zubi law firm was on an advisory team that included Bahrain-based financial adviser Ahmed Al Khan, it said.
Jackson’s U.S. spokeswoman, Raymone K. Bain, said Qays Zubi is an adviser to MJ but she could not confirm the contents of the news release issued from Bahrain. The singer acquired the catalog in 1985 for $47.5 million but sold half to Sony when he faced monetary problems.
Financial experts testifying at Jackson’s trial said the pop star was on the brink of bankruptcy and would likely be forced to sell his interest in the catalog.
Jackson recently had to shutter his Neverland ranch in California because of unpaid salaries and insurance fees.