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- By Parinda News Bureau, April 14, 12:24 IST
Like is done by millions of Americans who overspend – and is fast becoming a way of life for what is referred to as generation next in Mumbai, Michael Jackson too has opted for refinancing his loans.
Jackson, who spent years racking up debt, has appeared on the brink of ruin several times in recent years. Last month, he all but closed his sprawling California ranch after authorities threatened to sue him over unpaid wages to ranch employees. As part of the transaction, he will also agree at some point in the future to give up a part of a prized asset a song catalog that includes Beatles' hits to the Sony Corporation, they said. Last month, he all but closed his sprawling California ranch called Neverland.
Jackson used his stake in the song catalog as part of the collateral for about $270 million in loans from Bank of America. The bank sold the loans last year to Fortress Investment Group, a New York-based investment company that buys distressed debt.
The entire catalog, of which Jackson owns 50%, has been valued around $1 billion. As part of the new agreement, Fortress has agreed to provide a new $300 million loan and reduce the interest payments Jackson must make.
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