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Jackson Estate Ready to Pounce on Profiteer

6/22/2010 5:00 AM PDT BY TMZ STAFF

Katherine Jackson 86's Probate LawyersThe lawyer for the Michael Jackson estate thinks the businessman who partnered with Katherine Jackson is hurting Michael's children -- and is threatening legal action if the dude doesn't stop.

Howard Mann -- whose business ventures include online nude gambling -- got Katherine Jackson to agree to publish the book, "Never Can Say Goodbye," scheduled for release this week.

Mann also told TMZ he and Katherine will make record deals for 273 unreleased Michael Jackson songs -- part of an MJ treasure trove he acquired in a fire sale after Joe Jackson failed to pay a storage bill.

But estate lawyer Howard Weitzman is ticked, claiming Mann "may be using his relationship with Mrs. Jackson to infringe upon Michael Jackson's copyrights ... to the detriment of, among others, Michael's 3 kids."

Weitzman says Mann has no right "to exploit any estate assets" and he will take "whatever action is necessary to prevent him from unlawfully profiting."  TMZ translation -- the estate will sue his ass if Mann goes forward.
 
We're told Katherine Jackson is happy with the job the executors have done -- namely filling the coffers with hundreds of millions of dollars -- but sources say family members are in her ear, getting her to sign off on ventures that end up hurting the estate, MJ's kids, and Katherine herself.

117 COMMENTS

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91.

Daphne     

And all this talk about how "messy" Michael's life was. It wasn't that messy. The trial was brought about on false grounds, and the messiness was confined to unethical media who, for the lack of real scandals, had to resort to talking about - his nose.



Posted at 12:41 PM on Jun 22, 2010 by aston



Wonder how much money this guy made off of MJ's name. Some kind of a friend. If MJ wanted the tapes to be released, wonder why he didn't release the tapes before MJ passed. See what money could do to some people, even to a so called spiritual advisor. LOL.

1581 days ago
92.

susie    

Hallo Daphne, how are you?



http://www.youtube.com/watch?v=AW27IzNQxBg



;)



susie from Milano

1581 days ago
93.

Daphne     

18. how come she looks about 30 in this pic and yesterday she looked about 90.....hey its Tmz that calls you all Rabid fans...not me.



Posted at 4:42 AM on Jun 22, 2010 by electriczipper



This is funny. LOL.

1581 days ago
95.

moni    

The estate executors might simply have not had a lot of choices and were obligated to make some deals they may have otherwise foregone if the estate were in a stronger financial state. All in all, I believe the children will benefit in the way MJ wanted them to.
Posted at 11:25 AM by Pie




I think this is very true. The estate is there to pay back Michael's debts, and it’s there to earn money, especially for MJ3. Yesterday someone (I think it was “Michael.Jackson”) posted about an article from Wall Street Journal which says that the estate possibly will be forced to sell the ATV catalogue. Although I know some of you will smell a conspiracy again I think this case shows clearly that the estate HAS to make profit, a lot of profit, the more, the better.



“At the time, Mr. Jackson was in danger of defaulting on a $270 million loan held by hedge fund Fortress Investment Group LLC. As part of the agreement under which Barclays ultimately refinanced that debt, Mr. Jackson granted Sony an option to buy half of his stake in the company at any time for a fixed price of $250 million. At the time that was a generous valuation, but Sony/ATV's value has since soared to around $2 billion.
The Jackson estate and Sony have held talks about whether the company will again guarantee a refinancing of the debt backed by Mr. Jackson's Sony/ATV stake. If it won't, the estate could be forced to sell its stake in Sony/ATV at a steep discount, though that would still generate enough cash to wipe out the Barclays loan with hundreds of millions to spare. But Sony may have an incentive to reach a deal on refinancing, because buying out Mr. Jackson's estate would require it to pay hundreds of millions of dollars for an asset it already effectively controls.”



It’s an interesting read:
http://online.wsj.com/article/SB1000142405274870343860...4575315364195884770.html

1581 days ago
96.

Daphne     

95. Hallo Daphne, how are you?



http://www.youtube.com/watch?v=AW27IzNQxBg



susie from Milano



Posted at 1:02 PM on Jun 22, 2010 by susie



Thanks Susie. Yesterday, June 21, was their spring/summer 2011 fashion show. BTW do u sometimes get the Zegna models eating in your restaurant? Is it really warm in Milan right now?

1581 days ago
97.

Unknown    

Dear Phantom of the Opera:



Looking forward to more videos especially on June 25. Thanks

1581 days ago
98.

moni    

Sorry, link doesn't work.
Next try:
http://online.wsj.com/article/SB1000142405274870343860...4575315364195884770.html



If I'm not successful again, please google: Jackson Estate Steers to Next Challenge: Loan Refinancing Wall Street Journal

1581 days ago
99.

Daphne     

The Jackson estate and Sony have held talks about whether the company will again guarantee a refinancing of the debt backed by Mr. Jackson's Sony/ATV stake. If it won't, the estate could be forced to sell its stake in Sony/ATV at a steep discount, though that would still generate enough cash to wipe out the Barclays loan with hundreds of millions to spare. But Sony may have an incentive to reach a deal on refinancing, because buying out Mr. Jackson's estate would require it to pay hundreds of millions of dollars for an asset it already effectively controls.”



Posted at 1:11 PM on Jun 22, 2010 by moni



If the estates were able to convince Sony not to exercise their option, I think we should give the executors the credit for doing a good job in keeping the cataloque in MJ's hands. He viewed it as his prized asset. I read that article from WSJ, I'm hoping Sony will re-finance the loan. Then, everyone is happy. LOL.

1581 days ago
100.

Daphne     

http://online.wsj.com/article/SB1000142405274870343860......4575315364195884770.html



If I'm not successful again, please google: Jackson Estate Steers to Next Challenge: Loan Refinancing Wall Street Journal



Posted at 1:17 PM on Jun 22, 2010 by moni



Moni, this link doesn't work. The article is totally blank. Nothing.

1581 days ago
101.

susie    

Posted at 1:12 PM on Jun 22, 2010 by Daphne
___________________________________________



Daphne models don't eat, LOL!!
It's still cold here, expecially in the morning. We had storms last week and I was so happy. I can't stand continental climate.

1581 days ago
102.

MiMi    

101. Sorry, link doesn't work.
Next try:
http://online.wsj.com/article/SB1000142405274870343860.........4575315364195884770.html




If I'm not successful again, please google: Jackson Estate Steers to Next Challenge: Loan Refinancing Wall Street Journal




Posted at 1:17 PM on Jun 22, 2010 by moni
--------------------------------------------

Here ya go.



http://online.wsj.com/article/SB1000142405274870343860......4575315364195884770.html

1581 days ago
103.

MiMi    


Well that's really odd. All those dots do not appear in the original link.



1581 days ago
104.

moni    

It IS odd, MiMi, thank you for your efforts, I experienced the same. And sorry, Daphne. But the story is there. Maybe it helps just to just copy and paste or, as I said, good old googling: Jackson Estate Steers to Next Challenge: Loan Refinancing Wall Street Journal




http://online.wsj.com/article/SB1000142405274870343860...4575315364195884770.html

1581 days ago
105.

moni    

Nearly a year after Michael Jackson's death, the managers overseeing his estate have stabilized its precarious financial situation, but at least one major liability still looms: a $300 million loan due at the end of this year.
Thanks to the surge of fan interest sparked by Mr. Jackson's death, the singer generated an estimated $200 million posthumously, allowing the estate to pay off tens of millions of dollars in debt and avert foreclosure on the suburban Los Angeles complex where the singer's mother lives.
Since Mr. Jackson's death last June 25, his businesses have been run by the singer's longtime lawyer, John Branca, and a music-industry veteran and personal friend of Mr. Jackson's named John McClain. Unlike traditional executors, Messrs. Branca and McClain are aggressively managing Mr. Jackson's affairs as a going concern. The estate's primary beneficiaries are Mr. Jackson's three young children and his 80-year-old mother, Katherine, who is now the children's guardian.
Meanwhile, Mr. Jackson's absence from the equation has eliminated the chaos and out-of-control spending that reigned during his life.
Using income from past music sales and advances against future ones, music-publishing royalties, a film-rights sale and various other licensing deals, the estate has paid off nearly $200 million of the $500 million debt the singer had used to fund his extravagant spending in his final years.
Fans buying music and flocking to the movie "This Is It" generated millions of dollars.
The estate has collected as much as $125 million in royalties and advances from Sony Corp.'s Sony Music, which has sold 31.5 million Jackson albums since his death and plans to distribute an album of previously unreleased music around November. Corporate sibling Sony Pictures paid another $60... million for the rights to "This Is It," the do***entary about rehearsals for Mr. Jackson's planned comeback concert series.
Mijac, the publishing company that controls the copyrights to songs written by Mr. Jackson, is on track to generate $35 million in royalties. The estate is set to collect $11 million in dividends from Sony/ATV Music Publishing, the joint venture with Sony Corp. that controls 251 songs by the Beatles. Television and merchandise deals could generate another $10 million, while deals to create a videogame and two Cirque du Soleil shows based on Mr. Jackson's music are set to provide additional revenue later this year. The Sony Music deal guarantees Mr. Jackson's estate significant additional cash advances in coming years, too.
However, Mr. Jackson's biggest financial obligation remains unresolved. A $300 million loan from Barclays PLC, backed by his 50% stake in SONY/ATV, matures at the end of the year. To secure the loan in 2006, Mr. Jackson appealed for help from Sony, which dispatched two executives to meet him in Dubai and negotiate terms under which it would guarantee the loan.
At the time, Mr. Jackson was in danger of defaulting on a $270 million loan held by hedge fund Fortress Investment Group LLC. As part of the agreement under which Barclays ultimately refinanced that debt, Mr. Jackson granted Sony an option to buy half of his stake in the company at any time for a fixed price of $250 million. At the time that was a generous valuation, but Sony/ATV's value has since soared to around $2 billion.
The Jackson estate and Sony have held talks about whether the company will again guarantee a refinancing of the debt backed by Mr. Jackson's Sony/ATV stake. If it won't, the estate could be forced to sell its stake in Sony/ATV at a steep discount, though that would still generate enough cash to wipe out the Barclays loan with hundreds of millions to spare. But Sony may have an incentive to reach a deal on refinancing, because buying out Mr. Jackson's estate would require it to pay hundreds of millions of dollars for an asset it already effectively controls.
All of this stands in stark contrast to the state of affairs when Mr. Jackson died. Despite being poised for what was heralded as a major comeback concert series, his finances were in shambles and he was unable to meet some of his most basic financial obligations.
Among the unpaid bills at the time of his death, Mr. Jackson had not paid $341,000 to Thomas Mesereau, the lawyer who successfully defended him against charges of child molestation in 2005. That bill and many other creditors' claims, including invoices from several other law firms, have now been paid.
The singer was also months behind on utility bills for his longtime family home in Encino, Calif., where his mother, Katherine, now lives with his three children, along with the children of two of his brothers. The Los Angeles Department of Water and Power, owed nearly $9,000, was threatening to disconnect service. AT&T Inc. was owed $1,300.
More troubling, Mr. Jackson had fallen behind on the payments for a $5 million IndyMac loan secured by the house. The property was scheduled to enter foreclosure the day after Mr. Jackson died. A nearby condominium, four months behind on loan payments and homeowners' dues, was also threatened with foreclosure, according to people familiar with the matter. Mr. Jackson's representatives have now paid off those loans.
Mr. Jackson was living in a rented mansion in Holmby Hills, a ritzy neighborhood near Bel Air, covering his sizable personal overhead with a $35 million cash advance from AEG Live, the concert promoter that was planning to stage his London concerts. That loan, too, has been repaid.
Mr. Jackson's debts were spiraling out of control in other ways, too. A loan backed by Mijac carried a crushing 16.5% interest rate, to be paid out of royalties generated by the company. When the royalty payments fell short of the towering cost of servicing the debt, any unpaid interest was piled on to the principal. As a result, by the time of his death, the Mijac loan had reached $75 million, with $11 million due in annual interest, which was several million dollars more than the catalog was generating annually. The loan has now been refinanced with an interest rate of less than 4%. And thanks to increased album sales since Mr. Jackson's death and a new deal for public-performance royalties, the catalog is generating enough cash to pay off the refinanced loan a little more than a year from now.
Looking to raise cash Mr. Jackson had planned, then scrapped, an auction of most of his personal effects from Neverland, his 2,60...0-acre ranch near Santa Barbara. In 2008, after he had defaulted on a $24.5 million loan backed by the ranch itself, the property was spared from foreclosure when Colony Capital LLC, a Los Angeles real-estate investment firm, bought the note and put the property into a joint venture with Mr. Jackson. That venture is structured in such a way that Colony is responsible for the ranch's overhead, maintenance and tax costs.
If the property is sold, Colony is entitled to recover its costs, including the $24.5 million is paid to take over the busted loan, with the majority of the additional proceeds going to Mr. Jackson's estate. People with knowledge of the situation say that because of logistical issues, Neverland is unlikely to be converted into a public attraction like Elvis Presley's Graceland, making a sale the most likely outcome, though it doesn't appear imminent.



By Ethan Smith, Wall Street Journal

1581 days ago
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