Sun, Nov 22, 2009
EURweb |
|
Back to the Article »
Click Here
|
|---|
| Click here to post your comments. |
|
Name:
Teigh
Comment: Michael Jackson Bailout Said to Be Close By JEFF LEEDS and ANDREW ROSS SORKIN Published: April 13, 2006 NY Times 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 %*$et — 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. Under the deal he has been negotiating, Mr. Jackson would agree to provide Sony — which is co-owner of the Sony/ATV Music catalog with him — with an option to buy half his stake, or about 25 percent of the catalog, at a set price, according to the people briefed on the deal. Should Sony execute its option on the music catalog, it would ensure that Mr. Jackson was able to pay his debts, these people said. Executives involved in the deal cautioned last night that some details had yet to completed and that the agreement could still collapse. Representatives for Sony and Fortress declined to comment last night. A representative for Mr. Jackson did not return a call. But executives involved in the deal said it came after months of talks that spanned the globe, with meetings from Los Angeles to New York to London to Bahrain, where Mr. Jackson has been living at the hospitality of Sheik Abdullah, the ruler's son. The deal also comes after years of efforts by an eclectic parade of financial advisers including the California billionaire Ronald W. Burkle and the Florida entrepreneur Alvin Malnik to offer Mr. Jackson guidance for extricating himself from his woes. Mr. Jackson's financial managers had been pressing him to shed a part of his stake in the Sony/ATV venture since before he stood trial last year on charges of child molestation. He was acquitted last summer.
|
|
Name:
Teigh
Comment: CONTINUED....Many people close to Mr. Jackson have maintained that he could raise money to repay his loans — or at least stay afloat — by touring internationally or working out a series of television and book deals. But the consensus among his advisers was that he would face bankruptcy if he did not refinance. Sony has a longstanding interest in keeping Mr. Jackson solvent. If Fortress had moved to foreclose on Mr. Jackson, he might have been forced into bankruptcy protection, where his stake in the publishing company could be put up for auction. In negotiating the deal, Sony seeks to avoid the prospect that another bidder could gain ownership of the stake, which the company has long hoped to control. Sony has been trying to organize financial partners that could prop up Mr. Jackson's wobbly finances. In the fall, a Sony representative flew to Dubai to meet with Mr. Jackson and an adviser, Gaynell Lenoir, daughter of the late Gerald Lenoir, a lawyer who was a mentor to the lawyer Johnnie Cochran. Originally, they had tried to hammer out a deal in which Citigroup would acquire the loans, and offer Mr. Jackson a more favorable interest rate, around 6 percent, these executives said. Mr. Jackson had been paying more than 20 percent in monthly interest payments. Rather than sell the loans to Citigroup, Fortress agreed to match the bank's terms, the executives said. The various parties had agreed to the deal in principle a few weeks ago, the executives said, but the final pact was held up while the companies involved tried to address questions about potential exposure linked to Mr. Jackson's remaining legal problems. Prescient Capital, a New Jersey company that said it helped Mr. Jackson secure the original financing from Fortress, has sued him for breach of contract, accusing him of failing to pay millions of dollars in fees for providing financial advice. As a result, Mr. Jackson has finally been forced to loosen his grip on one of the richest of song catalogs. He paid $47.5 million in 1985 to acquire the ATV catalog, which had roughly 4,000 songs — among them more than 200 tunes written by members of the Beatles. After 10 months of negotiations with ATV's owner, the Australian tycoon Robert Holmes à Court, Mr. Jackson bested other suitors including the music executives Charles Koppelman and Martin Bandier, the London-based Virgin Records and the real estate entrepreneur Samuel J. Lefrak.
|
|
Name:
Teigh
Comment: CONTINUED...In 1995, as he confronted early financial woes, Mr. Jackson struck a deal to merge ATV with Sony's publishing arm. The arrangement also provided Mr. Jackson with a stake in new songs acquired by the venture, like "No Such Thing" by John Mayer. Aside from the Beatles songs, the venture has a vast archive including "Blowin' in the Wind" by Bob Dylan, "Sweet Caroline" by Neil Diamond and "E-Pro" by Beck The catalog also includes the works of songwriters including Stevie Nicks, Sarah McLachlan, Destiny's Child, Garth Brooks and Richie Sambora of Bon Jovi. The venture is also a big force in country music, having acquired the catalog of Roy Acuff and Fred Rose for $157 million in 2002. An archive of songs from the likes of Hank Williams and Roy Orbison is also included. (c) The New York Times
|
|
Name:
sultry
Comment: i am just sorry but call me stupid if you like but i do not nor have i ever believed that Michael was broke or near broke. If this man was so much in default you better believe that everything that he owned would have been taken. The lengths that entertainer go through with just to get some publicity is so amazing to me. Just watch it Michael will come out with an album and be back on the top. He is regrouping.
|
|
Name:
xavixavi
Comment: listen I'm okay w/ michael. I still don't like him being addressed as anything other than his name. I think it's insulting to call him mijac, but was it really necessary to paste the article in the comments section? A link would have sufficed.
And yes I agree that he was never truly broke. People w/ publishing rights, and who write songs usually aren't totally broke.
The only place he can tour, is anywhere other than the us. The last time he tried to tour for too much damn money here, they ended up giving the seats to charity so they could get a write off.
|
|
Name:
Exmun
Comment: I define broke as when your expenses exceed your income. To that extent, I believe that he was broke. You could have millions coming in every year, but if you spend more than you make, you're broke. From what it sounds like Michael was doing that... perhaps still is. There are simple financial laws that apply to everyone rich or not rich: 1) Get control of your finances and manage your money, 2) To that end, simplify your life so that your expenses do not exceed your income, 3) Pay yourself first by putting aside at least 10 percent of your income--OFF THE TOP to yourself for investments that grow your money further, 4) Save an additional 10 percent for yourself for contingency-emergency, 5) Put 10 percent aside for spending on yourself, 6) Live on 50-60 percent of your income, 7) Be totally honest about your money, 8) Have your own plan, get good advisors, but don't spend ALL your money paying others for advice, 9) Keep tabs on those in your employ--especially if they have access or influence over your money 10) Don't live beyong your means. To me, Michael Jackson doesn't appear close to the above. And, Sony/ATV catalog or not, he appears to have more going out than coming in. My impression as to why his debtors are shy to sell of his %*$ets is because there is so much money at stake. Once a party files bankruptcy, all of their %*$ets are in jeopardy of being sold (at a bankruptcy sale) for less than their true value. Plus, for Sony/ATV that would mean that they could have to deal with another joint owner not of their choosing. And IF they can work out a deal such as this one, they can control their destiny and secure a first right of refusal interest in the catalog rather than have it at the mercy of the tide and ending up in the hands of one of Sony's competitors... like Universal. Notwithstanding the financial woes, it looks like Michael made a brilliant move in 85 by acquiring the catalog. Cudos for at least one good decision.
|
|
Name:
VeeCee
Comment: >xavixavi - EURweb nicknamed calling him MiJac under pressure from its readers (including myself). No matter how people may feel about Michael Jackson professionally or personally, it was MUCH more disrespectful to refer to him as "Jacko," which is how EURweb and many other media outlets kept referring to him. There are other celebrities whose public acts have been questionable in recent years but the media would never insult them. For instance - they will never regard J-Lo as "J-Ho" or Tom Cruise as "Tom Craze," no matter how sleazy or psychotic they have appeared in public.
|
|
Name:
beboyz
Comment: Michael Michael Michael LOL
|
|
Name:
Gemami
Comment: First, EUR usually cut and paste from other media outlets, so don't get mad at them. And the poster isn't the first person to cut and paste an article, so what's the big deal. Second, Michael Jackson isn't the only person that has been designated a nickname by the media, so what makes him so special. And third, as Exmun said, anyone's whose expenditures/bills exceed their income is/maybe broke. That sounds like Michael, who has taken out loans to handle his finances, did not pay his employees at Netherland and gave up a portion of his Sony catalogue, so he could avoid bankruptcy. Let's stop being in "MiJac" denial. He's broke... no, you won't see him on the Santa Monica freeway moonwalking for a Pepsi, but he's not the "King of Pop" we once known and loved.
|
|
Name:
TMan
Comment: Michael will always have money. He may have to bump himself down a couple of levels after the way he's been living for a while now and some more financial discipline seems to be in order for him, but the man will always have moolah. Trust!
|
|
Name:
Gurlfrand
Comment: I thought he was a multi-billionaire - that's what some of the posters were saying previously - why is he having to give up part of his music catalogue?? What happened to his fortune over the last 30 years??
|
|
Name:
realuvbaby
Comment: Many business must claw their way out of financial holes. Donald Trump, for example, has done it numerous times; some cities must do so. Delta is trying to claw it's way out right now. So what we lose things, if he were to die tomorrow, he could not take one copper with him. Nobody does. Ask King Tut. It will be a great day when Michael can put all this behind this and prove to the world that his gifts are valid, that he is worthy of the love and respect he's given to the world. When you love someone, you love them whether they are up or down. Personally, I feel that Michael and his family have given us some of us wonderful memories and music which played out as a soundtrack for the times we were going through. If he makes a comeback, fine; if he doesn't, I'll just pray that he works it out for himself and his family and enjoy what Michael and his brothers have given us. CAN YOU FEEL IT???!! I can. Everything has a shelf life . . . even stellar careers! Everything must change. Nothing and no one goes unchanged.
|
|
Name:
ladybyrd
Comment: Michael isn't broke. His money however isn't all tangible. As far as liquid he did not have enough to keep up with his elaborate lifestyle, enormous attorney fees, he was still giving tons of donations to Africa and childrens hospitals etc. I'm rooting for MJ.
|
|
Name:
Gurlfrand
Comment: >realuvbaby - well said. I can still feel it. I wish Mike the best in his efforts in restructuring his life. We all have to restructure at some point in our lives and though I'm not at Mike's level in liquid %*$ets, I, myself, are currently restructuring and reinventing my own life. Have a great weekend, yall.
|
|
Name:
TMan
Comment: I said it before, MJ, get yourself a nice house and live like a regular wealthy person with dough! lol. Bump your joints down a couple levels and get a nice place and chill. Dont forget to build the slammin studio in your basement bro so you can keep churning out da hits!
|
|
Name:
MsMo
Comment: What HOLE?????
Not that it's any of our business, but at least it's from the man himself!
Posted: Thu Apr 13, 2006 7:25 pm Post subject: Michael Jackson Restructures His Finances
MANAMA, Bahrain, April 13 /PRNewswire
Michael Jackson is pleased to announce that he has restructured his finances with the assistance of Sony Corporation of America, the long time co-owner of Sony/ATV Music Publishing LLC. Following negotiations with several leading financial institutions, Mr. Jackson has concluded refinancing with affiliates of Fortress Investment Group, the lender that currently holds secured debts that were previously held by Bank of America. Citigroup structured the transaction for the parties. The terms of this new financing deal will not be disclosed.
Mr. Jackson was supported on the refinancing by an advisory team that included Bahrain-based financial advisor Ahmed Al Khan and Qays H. Zubi Attorneys & Legal Consultants. http://www.prnewswire.com/
SOURCE: Michael Jackson
|
|
Name:
MsMo
Comment: My 10 cents:
Personally, I think that Michael is beating “them” at their own game, once again. He’s probably been moving %*$ets to offshore banks to appear to be poor on paper. It's probably been a part of a plan for a long time. Banking is one of Bahrain’s main industries. Think about it. He can kill several birds with one stone that way. It kills the incentive of all of the sue happy folks and their lawyers, it puts his %*$ets in offshore accounts away from the prying eyes of the U.S. media, and keeps the U.S. .gov from taking their cut in taxes.
The confidentiality laws for some offshore jurisdictions are no joke and big business has been doing it that way for years. Limited partnerships/liability companies split ownership to keep creditors from seizing businesses and real estate all the time. When you make BIG money, you must carry BIG debt, otherwise, uncle sam takes HALF! It’s all legal, so he might as well do it too. He never was any where near bankruptcy…that’s just sensationalism. There’s a huge difference between that and being cash poor. They act like that catalog is his only %*$et!
Even if the rumors about the terms were true, the way I understand it, Sony will only get 25% of Michael’s 50% IF, and only IF he doesn’t meet the terms of the new (refinance) agreement.
It’s all just “good business sense” when “they” do it!
I mean he is big business all by himself. He’s half owner of the 3rd largest music publishing company in the world, he just happens to be an individual.
I'll bet that every time that fox news reporter claims he's going broke, Michael laughs all the way to the bank!
The thing that all of this NOISE is hiding, is the fact that the Beatles songs are about to go digital and be sold online for the first time, which can only make the catalog even more valuable. KA-Ching!!!
Los Angeles financial adviser, Gaynell Lenoir, says the new deal is a positive development for Michael. "He's seriously looking at his business affairs, and we're proud of him, really. He is vibrant, [and] he is going to resume his career", she said in an interview.
Bottom line, don’t believe the hype. Any claims of knowing the terms of the agreement are just that, claims, rumors and speculation. The terms HAVE NOT been disclosed.
Funny how they NEVER speculate in Michael’s favor…
|
|
Name:
Exmun
Comment: I don't know... to me if a man can't/won't pay his employees for a month and refuses to just lay them off BEFORE he realizes that he can't/won't pay them, that suggests a lot of denial or mismanagement going on. I sincerely don't think Michael has this "master plan" to move his money offshore as MsMo suggest. Where there's smoke... there's fire.
|
|
Name:
ladybyrd
Comment: TMan > I agree! He doesn't need 40,000sf. And all those statues and parks. He just need about 6-10,000sf w/studio in toe. Set-up Mike! *still listening to Angela Winbush "Angel".*
|
|
Name:
eddie
Comment: Michael Jackson is a Billionaire.Keep in mind people they are only giving the value of M.J's 50% in Sony/ATV,they do not include Mjproduction,neverland or his %*$et over seas in hotels,oil and so much more.Michael is living with the RICHEST PEOPLE ON THE PLANET THE ARABS,Michael Jackson is worth more than 10 Billion dollars.
|
|
Name:
Exmun
Comment: Ladybird/TMan, your comments sounds like it comes from people who make sense and live in the real world. People ...thinking people... in the real world scale back their lifestyle when the expenses have gotten out of control. People ... thinking people... don't get close to situations that might make them liable in a civil lawsuit or a criminal trial once they've been raked over the coals for money on occasion(s) in the past. People ...thinking people... tell their employees "I gotta let you go" if they don't want to foot the bill for their employees' any longer. Real people... diligently handle their affairs. Michael's junk is all out of whack and folks have the nerve to still say that his koolaid tastes ok. I am not a Mike hater. I liked his music in the 80's and some of his more recent stuff. I think that he is one of the world's greatest entertainers. His shows are/were practically a spiritual experience. But, I gotta call a spade a spade. I create spin for a living, and what I hear from Michael's camp is spin... and that not so clever. I don't think he's not making money. But I DO think that he's spending more than he makes. And regardless of how much you make, that still spells trouble. So, some degree of candor is in order. I could care less if he makes public statements about his money. That's his business. BUT... don't come out and spin me some line to make it seem like things are all hunky dory when you're a bit tight on the cash. And don't try to make it seem like you're pimpin' in Bahrain if you're merely someone's guest.
|
|
Name:
Exmun
Comment: An "%*$et" is "something that MAKES you money in the present." RIGHT NOW, Neverland does not MAKE any money right now... and is technically a "liability," because the owner (MJJ) has present day expenses and no income. The Sony/ATV catalog is a true %*$et because it makes money presently. A lot of folks confuse these all the time. A big expensive piece of non-income producing property is not an %*$et until you sell it. So Michael may have some investments that may ultimately be worth more than he paid... but if those investments are not making money in the present day... they are not %*$ets.
|
|
Name:
Exmun
Comment: the blocked word should be a-s-s-e-t-s
|
|
Name:
ladybyrd
Comment: On yahoo: A statement from the singer's representatives in Bahrain said Jackson "has restructured his finances with the assistance of Sony Corporation of America" and has "concluded refinancing with affiliates of Fortress Investment Group."
|
|
Name:
MsMo
Comment: People have been underestimating this man for years…that’s partly how he ended up with the catalog in the first place…Paul McCartney didn’t believe he was gonna buy it even after Michael warned him on more than one occasion that he was.
Granted, he’s had a lot of bad employees and backstabbing associates, but if the media was right about HIM, he would either be broke, homeless, strung out, locked up, suicidal or dead today, and he’s none of that.
If the smoke being fanned his way were an indication that HIS house was on fire, it would have burned to the ground a long, LONG time ago.
Neverland is more than just an %*$et. We’re talkin’ about 27 HUNDRED acres with all but about 40-50 ACRES being LEASED out to cattle ranchers!
HE Hee! Wooo!
|
|
Name:
yasmine1
Comment: Sultry you are making sense and Ms Mo...you might have something there...Mike did beat the haters at their own game...they hate that the Beatles catalog is not being taken away from him....and he has a HUGE corporation in business with him STILL...with every acquisition Sony makes...Mijac gets paid on...also Sony is set to buy another BIG the music catalog...stay tuned!!!! this issue with Mike needed to be done before going forward...Mijac is in a win - win situation...debts paid...and new investment deals coming ....also Mijac ...the musician...is getting set to launch....stay tuned
|
|
Name:
yasmine1
Comment: Exmun, Mijac bought an $8million house in Bahrain after a month of being there...he was a guest in the Princes house for a month...and he is currently getting a custom made house built...he will let his guest have the $8 mil house when they to visit ...becuz he will be moving to the other house when it is finish....the spin of the US media is something else...Mijac like many celebs is a corp until himself...and corporations get refinanced to maximize their business...What didn't the media freak when Donald Trump filed for court protection for his casinos????
|
|
Name:
yasmine1
Comment: I mean..celebs are corporations unto themselves and why didn't the media freak when Trump filed for court protection for his casinos...now that the media haters are realized that Mijac won't be filing for bankruptcy anytime soon...they will move on to Whitney Houston on full force...pray for her ...she needs our prayers....
|
|
Name:
ladybyrd
Comment: MsMo > I agree! There are so many people against Mike these it isn't funny. The LA DA has this vendetta going. The Media & Hollywood has begun cashing in on Mike in negative lights. It's madness...
|
|
Name:
goodnplenty1957
Comment: see MIKE. if you left them kids alone you wouldnt be in this predicament. if you had a thing for little black boys, it would have happened only once! If you would have survived the beat down from the BLACK parents. whats next? maybe you and whitney can do a duet. "NEVER TOO MUCH!" (i think both of yall had too much already).
|
|
Name:
ladybyrd
Comment: I guarantee you that Paul McCartney is praying that Mike get rid of The Beatles catalog. The media every know and again will interview Paul regarding what he thinks about Michael's woes. They know it as well as we do,that Paul can't wait to prey on Mike while he is down.
|
|
Name:
ladylove
Comment: Okay, I've read enough. Now here are my two cents. First, let me explain broke. Broke is when you don't have gas money, when you live check to check, hoping that the phone company, gas company, electric company, water company, apartment leasing office, mortgage company, and day care centers will show you mercy. Broke is when you are lucky to even have $50 carry you to the next week. Thats broke. Thats what Michael Jackson is not. Don't believe me? Think about it: How is it that he just so happened to come up with $500,000 to pay the state of California for backpay on wages, and no one saw him go get the money? Just think about that for a minute. Now the issue with not paying his employees. When I get paid, it is the responsibility of the Finance department who makes sure that payroll sends out our paychecks or does the direct deposits, not the owner of the company. Therefore, since Michael paid someone to handle payroll, don't you think that person should be held accountable and not Michael. He's just the owner, he doesn't work the payroll/billing. As for restructuring, he did what most people do to get out of debt. He's just got bigger %*$ets. I've restructured my finances. When you know you got money coming from a source, you will use that money instead of your own everyday money to pay things off. Thats just what he did. People are forgetting that this man gets royalty checks on an regular basis. Why? Because he has invested, knows a good investment when he sees one, and gets a return off of his investments. If any of you out there are business owners such as myself, this is what happens. I'm a small business owner, but every month I get 25% back of what I invest. Its business. Long before his children came into the picture, he was single with no dependents. If you file your taxes, you know that when you have right offs, the money you put out comes back. I wish he would teach a finance class because I will be right there. But some of you already know this. But you all think that because its Michael Jackson, he does things that regular humans don't do. Thats far from true. Like I said, he's got the bigger %*$ets and investments. You better believe he ain't broke. I say to Micheal......Rock On Big Baby!!!!
|
|
Name:
BigBlackRod
Comment: My peeps on BAW know my take on this cat: PHUCC MIKE!!! PEACE.
|
|
Name:
MsMo
Comment: Every time his U.S. media, BRAINWASHED haters waste their breath talkin' trash, Michael is makin' money.
He has 7 video singles of HIS OWN music in the top 12 at the same time on the charts in Spain, right now TODAY. 5 of which are in the top 6.
This has got to be a world record, especially considering the fact that all of the songs are between 20 and nearly 30 years old!
Spanish Singles Chart
April 12 - 19, 2006
#1 "The way you make me feel"
#2 "Bad"
#4 "Beat it"
#5 "Billie Jean"
#6 "Thriller"
#9 "Don't stop 'til you get enough"
#12 "Rock with you" Michael Jackson
http://allcharts.org/music/spain/singles.htm
|
|
Name:
MsMo
Comment: Michael confirms new business deals
Tuesday April 18, 01:29 PM
By WENN
Michael Jackson has confirmed his new manager is English music mogul Guy Holmes.
Jackson has signed a record deal with Two Seas Records, the label HE HAS FOUNDED with Bahrain ruler Sheik Abdulla Hamad Al-Khalifa.
Gut Records chairman Holmes has been named Two Seas Records Chief Executive Officer (CEO).
The superstar is currently writing a NEW ALBUM which is due for release late NEXT YEAR.
Jackson, 47, says, "I am incredibly excited about my new venture and I am enjoying being back in the studio making music."
I don't care how talented he is, Millionaires & Billionaries don't become BUSINESS PARTNERS with no broke Negro!!!
http://uk.news.yahoo.com/18042006/364/jackson-confirms -new-management-deal.html
|
| Back to Top |
| Click here to post your comments. |
| Back to the Article » Click Here |
|---|
...
