*The executors of Michael Jackson’s Estate filed legal documents today outlining the various steps taken to keep the King of Pop business from going bankrupt.
According to the docs, obtained by TMZ, Jackson owed millions at the time of his death. The Jackson family was also on the verge of losing its home in Encino.
Executors John Branca and John McClain turned things around by first restructuring all of Jackson’s debts, which included getting creditors to significantly lower their high interest rates.
Secondly, the executors set their sights on generating revenue, beginning with the film, “This Is It.” According to the docs, the movie grossed $260,000,000, the most lucrative documentary in history. The soundtrack sold 5 million copies, making it the 3rd biggest album in 2009.
As for other deals, the executors republished the “Moonwalk” book, made mega-merchandising agreements, distributed a leather-bound, coffee table book on the life of MJ and renegotiated the singer’s royalty agreements with record label, TMZ reported.
But there were lots of legal fees that were incurred to make the estate money — more than $3.8 million since Jackson’s death.
The estate also notes that they paid off the Jackson family home in Encino and bought Katherine Jackson a car.
According to TMZ, the estate made a number of decisions on creditors’ claims, with the following four standing out:
— Dr. Arnold Klein submitted two claims for medical services in the months before Michael Jackson died — totaling $58,522.89. Pretty ironic, since some people in the Jackson world believe Klein contributed to MJ’s death. The estate has taken no action so far — neither rejecting nor paying the dough.
— Tom Mesereau, the lawyer who did a remarkable job in Jackson’s 2005 molestation trial. Mesereausubmitted a claim for $341,452.05. The estate paid the lawyer in full.
— Kai Chase, the cook who was at Jackson’s home the morning he died and the woman who interacted with Dr. Conrad Murray that day, submitted a claim for $8,000. The executors compromised with Chase and settled the claim by making partial payment. This one is interesting because some of MJ’s family got pissed off when she made the rounds on TV following his death.
— Raymone Bain, MJ’s longtime publicist and friend who had a mega falling-out with Jackson, had filed two claims totaling $404,000. The estate rejected the claim and Bain sued. The court tossed her case out.