Michael’s Estate has generated more than $310million in the two years since Michael died. According to court documents recently filed, this will enable the Estate to distribute a payment of $30 million to Katherine Jackson, Michael’s three children and unnamed charities.
Mrs Jackson has also asked the Estate executors to negotiate the sale of the Encino compound where Michael grew up, and in addition to this, negotiate the purchase of another family home for her and the three children. They are currently living in a rented home in Calabasas, and Mrs Jackson has listed several similarly priced home that would suit her needs and those of the children.
The executors said the trust and the California attorney general’s office, which is representing charities as beneficiaries of the estate, have been pressing for distribution of funds. The executors, John Branca and John McClain, filed a detailed accounting of finances since Michael’s death on June 25th, 2009. By the end of last year, the estate had produced more than $310 million in gross revenues. “Since that date, the estate assets have continued to generate additional income,” the executors said. Notably, they said they were able to refinance and secure the estate’s interest in the Michael Jackson music catalog, Mijac, and the Sony/ATV publishing catalog, which includes the Beatles catalog.
They said they reduced debt obligations by more than $90 million and refinanced loans at lower interest rates. They also benefited from the release of the posthumous concert film, ‘This Is It,’ and said they were able to pay off dozens of approved creditors’ claims as well as Michael’s income taxes. Some creditor claims remain open, according to the documents, but the deadline for filing claims against the estate has passed.
“For a number of reasons, including without limitation, pending litigation and a pending estate tax audit, the estate is not yet in a condition to be closed,” the document said. They listed cash on hand of $90 million. They indicated that the $30 million was a preliminary distribution to the trust and more would be forthcoming in the future.
The hearing for a judge’s approval of the plan is set for September 28th.