*Court documents filed recently reveal that Michael Jackson was over $500 million in debt at the time of his death in 2009.
PEOPLE reports that the King of Pop’s estate has been seeking reimbursement for legal fees, negotiation costs, and other operating expenses since 2018. The filing—submitted to Los Angeles County Superior Court on June 21—indicates Jackson owed money to more than 65 creditors upon passing.
Jackson “incurred considerable expense in connection with preparations for his concert tour, ‘This Is It.'” the filing read. The docs explain that MJ’s untimely passing “left his Estate with financial liability approximating $40 million” to the promoter of his tour.
NBC News reports that the attorneys for the executors said Jackson “changed business managers, lawyers, and personal managers several times in the years” before his death.” After he passed, the lawyers had to track down various pertinent documents “scattered around the country.”
The estate’s executors’ attorneys assert they settled the estate’s debts following Jackson’s death and “successfully enhanced Michael Jackson’s image and legacy, benefiting the beneficiaries of Michael’s Trust.”
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Per the filing, “Although more than a decade has passed since Michael Jackson’s death, from time to time, the Executors must deal with the consequences of the circumstances that existed at the time of Michael Jackson’s death.”
PEOPLE reports that Jackson had “more than half a dozen lawsuits pending worldwide” and more than “65 creditors’ claims were filed in the Estate spawning additional lawsuits, of which several resulted in litigation,” the petition reads.
After his death, the executors’ attorneys handled 15 lawsuits in the U.S. and assisted with cases in Europe and Japan, most of which were resolved or settled favorably.
The executors’ attorneys are seeking court approval to compensate legal firms for “extraordinary services” rendered on behalf of Jackson’s estate, totaling over $3.5 million.
“At the time of Michael Jackson’s death, his assets were highly leveraged and the debt in some cases was in default,” the court document read.
“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,” per the petition.
“The Executors, with the assistance of their legal team, worked to bring all debt current, and negotiated and restructured the debt at interest rates far more favorable to the Estate so that the Estate was able to and has paid in full all of the debt that so heavily burdened Michael Jackson during his life,” the filing states.
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