Transitional Investors LLC have lodged a major breach of contract lawsuit against Michael stating that he employed them to restructure his loans in 2004, and that and he also was seeking additional loans to assist with the purchase of the other 50% of the Sony/ATV catalogue.
In the event that Michael would cancel his agreement with Transitional, it was said that he would pay the company $3million as a break-up fee.
It appears that Transitional arranged funding for all of Michael’s requirements on the information given to them by Michael’s representative’s Don Stabler and Darien Dash, using “all the assets of the MJ Publishing Trust including Michael’s ownership of 50% of the Sony/ATV and the Mijac catalogues as collateral. As a result Transitional say they are entitled to 9% of $330million.
A date has been set for a hearing on December 14th 2007 at 9.00a.m., in the Superior Court in San Francisco.