Michael Jackson was $500 million in debt when he died: new court docs

nypost.com:

obtained by People show.“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 said.Before his death, Jackson had been in the middle of preparing for his “This Is It” residency, which added some strain on his finances.He died on June 25, 2009 — close to the tour’s inception — which left his estate financially liable for $40 million to the tour promoter, AEG.The petition requests that money from the “Smooth Criminal” hitmaker’s estate be used for reimbursement stemming from 2018.The reimbursement includes “legal, negotiating and various other operating expenses,” per the filing.Jackson had “more than half a dozen lawsuits pending worldwide” at the time of his death, the petition reads.“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,” court documents read.From July to December 2018, several firms are seeking over $3.5 million in legal fees for services rendered during that time.“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,” the filing reads.“The Executors have.