First, the value of the asset, say $1 billion, will be sharply discounted, by at least 15%, because another party owns the other 50%. IOW, there is no clear controll...it is "encumbered" and therefore worth less..
Next..it is believed that MJ has fradulently pledged the asset, and/or the stream of income from the asset, to cover other loans..
But the big problem for MJ is the tax consequences..when he aquired the asset it was for about $200 mill..so on his now 50% residual piece, he's looking at a capital gain of between $300 -$400 mill..A forclosure sale is still a sale, and the tax bill ..say $150 mill between the US and California..will be due, and the IRS and Cal will file liens on the transfer..MJ won't get a thin dime...
Damn those tax-cutting Republicans!
True he'll lose a big chunk to taxes, but he'll still end up with a 9 figure chunk of change. The Fortress folks are experienced control-block distressed players, and are well equipped to handle (and predict) the complicating factors. It would be interesting to know what they paid for it, as that would give a very good clue as to what the ultimate sale price of the collateral will be. You can be sure they didn't buy these loans without some preliminary chats with serious buyers (at least for the Beatles catalog, California real estate is what it is).