The NYT has a story on this, too..
Michael Jackson Bailout Said to Be Close
By JEFF LEEDS and ANDREW ROSS SORKIN
Published: April 13, 2006
Michael Jackson, the onetime pop-music king who has endured a lengthy slide toward insolvency, is close to a deal that would keep him from bankruptcy by refinancing hundreds of millions of dollars in loans, people briefed on the plan said last night.
Skip to next paragraph
As part of the transaction, he will also agree at some point in the future to give up a part of a prized asset — a song catalog that includes Beatles' hits — to the Sony Corporation, people briefed on the plan said.
Mr. Jackson, who spent years racking up debt to underwrite his lifestyle even as his music career faded, has appeared to teeter on the brink of ruin several times in recent years. Last month, he all but closed his sprawling California ranch called Neverland, a move that came after the California authorities threatened to sue over unpaid wages to ranch employees.
Mr. Jackson used his stake in the song catalog as part of the collateral for about $270 million in loans from Bank of America. The bank sold the loans last year to Fortress Investment Group, a New York-based investment company that buys distressed debt. The entire catalog, of which Mr. Jackson owns 50 percent, has been valued around $1 billion, the people briefed said.
As part of the new agreement, Fortress has agreed to provide a new $300 million loan and reduce the interest payments Mr. Jackson must make.
snip
http://www.nytimes.com/2006/04/13/business/media/13music.html
Oh, he's doomed now. Maybe he can write a theme song for NAMBLA and make a few bucks.
It's a cliche', I know.......but...........
If you really want to borrow a LOT of money and get VERY favorable terms.....just be sure that you owe a LOT of money first.