How Did Michael Jackson Leave a Debt of R$2.7 Billion When He Died? Understand

To the debts In Michael Jackson and creditors’ claims at the time of his death in 2009 amounted to more than 500 million dollars (or R$2.7 billion), according to a court document filed by the pop superstar’s estate that details his financial difficulties at the end of his life.

According to the document filed in Los Angeles County Superior Court, Jackson owed about $40 million to tour producer AEG. Sixty-five creditors filed claims against the singer after his death, some of which led to lawsuits, and that some of his debt was “accumulating extremely high interest rates.”

A representative for Jackson’s estate, run by John Branca and John McClain, did not immediately respond to a request for comment. The firm has filed court documents seeking authorization to pay $3.5 million to several law firms for their work in the second half of 2018.

The executors say in the document that they have written off the debt from the estate and that nearly all creditors’ claims and disputes have been resolved. Jackson earned hundreds of millions of dollars in the 1980s and 1990s as the creator of some of the best-selling albums of all time, along with massive tours that sold out stadiums around the world. He purchased the Beatles’ music catalog for $47.5 million in 1985 and later sold it to Sony/ATV Music in exchange for a 50 percent stake in the company. Sony bought back his stake in the estate for $750 million in 2016.

But when Jackson died at age 50, shortly before embarking on a tour called This isleft behind a complex web of assets and liabilities. Jackson was known for his extravagant lifestyle and reckless spending. He racked up millions of dollars in debt at his Neverland Ranch estate in Southern California and had a penchant for art, jewelry and private jets.

He was paying more than $30 million a year in interest payments, a forensic accountant testified during a 2013 wrongful death trial in which AEG prevailed. The singer’s estate is currently in dispute with the IRS following a tax audit. In a separate court filing this year, estate representatives said the federal agency accused him of undervaluing his assets and said he owed “an additional $700 million in taxes and penalties.”

This article originally appeared in The New York Times.

This content has been translated with the help of artificial intelligence tools and reviewed by our editorial team. Find out more in our Artificial Intelligence Policy.

Source: Terra