Michael Jackson was reportedly in significant debt exceeding $500 million at the time of his death in 2009, according to recent court documents.
The late King of Pop owed money to more than 65 creditors, as revealed by estate executors who filed a petition seeking back pay from 2018.
The petition outlines that Jackson’s estate, now valued at approximately $2 billion, incurred substantial legal and operational expenses over the past six years.
Jackson’s estate, burdened with debt and facing numerous lawsuits globally, managed to renegotiate financing arrangements posthumously, reducing interest rates and safeguarding assets from lenders.
The estate’s financial affairs are overseen by the probate court, in accordance with agreements involving Jackson’s children: Paris, Prince, and Bigi, who are beneficiaries.
Attorneys managing the estate must seek court approval every six months to receive 30% of their compensation, with the remaining 70% retained.
Recent filings indicate legal firms requested over $3.5 million in fees dating back six years.
Despite resolving most creditors’ claims and solidifying Jackson’s business legacy, challenges persist with ongoing business, tax, and legal matters.
The recent petition follows heightened family disputes over Jackson’s estate earlier this year, including concerns raised by Jackson’s son, Bigi, also known as Blanket, who opposed using family funds for legal battles involving his grandmother, Katherine Jackson, 93.
Recent court proceedings between them reportedly centered on undisclosed issues, as reported by TMZ.
