(CelebrityAccess MediaWire) — Lawyers for the King of Pop and a key creditor are in talks to keep Michael Jackson from defaulting on $200 million in loans secured by his prized stake in the Beatles’ song catalog, an attorney for the singer said this week. A default on the loans, which came due yesterday and are held by Fortress Investment Group, would allow the New York private equity fund to seize Jackson’s 50 percent interest in Beatles publishing rights, valued at about $500 million.
The entire song catalogue is owned by Jackson and Sony Corp. through Sony/ATV Music Publishing.
Jackson bought publishing rights to the catalog for about $48 million two decades ago, at the height of his career. Financial troubles related to his child molestation case earlier this year have left the pop star in debt.
Brent Ayscough, a civil lawyer for Jackson, told Reuters that representatives for the 47-year-old entertainer and Fortress were working to renegotiate terms of the loans to give Jackson more time to avoid default.
“There is no doomsday, or anything like that,” Ayscough told reporters on December 19th. “Nothing’s going to happen tomorrow. At the moment people are still talking.” –by CelebrityAccess Staff Writers