Michael Jackson may lose Neverland Ranch

Michael Jackson has defaulted on a loan, could cost him the Neverland Ranch.

Michael Jackson may lose Neverland Ranch Michael Jackson has defaulted on a $23 million loan with a Delaware corporation and if the pop star doesn't pay the full amount plus interest within 90 days, he will lose the Neverland Ranch. The loan in question was made by Fortress Music Trust and last week rumors surfaced that the holder was desperately trying to sell off the loan to another company. Now the rumors are that Michael Jackson will file a bankruptcy within those 90 days to prevent future financial claims. The $23 million loan was secured against the famous Neverland Ranch, which is valued at about $30 million, but if Jacko fails to settle the loan, we may see how much it's really worth, once it goes on the market.

Michael Jackson has another loan of $300 million, which he had secured with his 50% stake in Sony/ATV Music Publishing. Jackson has also settled a few lawsuits, which still await payments and is currently being sued for $7 million by Prince Abdullah of Bahrain. After all, bankruptcy may not be such a bad idea for the po'-boy Jackson.

Published on 10/26/2007