On April 14th 2006 Michael Jackson struck a deal with Sony and Fortress Investments. Sony was allowed to take control of half of Jackson's stake in Sony/ATV Music Publishing which Mike co-owns. Jackson was left with 25% of the catalogue, with the rest belonging to Sony.
^^ SONY released an official statement regarding this the same week.. Also Ms. Bain that same week released a statement saying that Michael "restructured his finances with the assistance of Sony."
Screw it.. No staff is saying NO do not type... so!!!
Mike ownes his music under 'Mijac' his company.. along with a couple other artists songs.. To sum it up, Michael used Mijac as COLLATERAL to hold two LOANS.. Meaning the BANK held official control of what happens WITH the music...
Remember when Mike wanted to leave SONY?? Well, the Bank offered SONY to buy the 'Mijac' after it's value went under the amount the bank agreed to hold it for.. Which means he needed to find more collatoral.. (His Neverland Ranch and the family home), Sony threatened Michael that if he LEAVES them before the contract is up, they will buy 'Mijac' and he'll leave Sony without his own music.. This is a MAJOR reason why Mike stayed with Sony. (They THREATENED) him..
More in the Sony conspiracy:
Michael sold 25% of his 50% (Sony-ATV) rights to sony, in a trade that they would use that money to pay off the loans.. SONY paid the full Loans except for 10% PURPOUSLY so the Bank would still have control of his music OVER MICHAEL.. And give Sony more POWER to keep Mike under their wings..At this point Michael took Neverland and the Family home off of 'collateral' but the 10% still held 'Mijac'
mean while the Bank sold the loan to Fortress Investment with a 20% interest rate.. (Which is high)
just do the research yourself then.. I spend hours, looking for things, and I find a lot of things that have been usefull in all aspects of MJ (from a fan view).. I think it's funny when people argue with other fans about what's true and not true.. But they don't spend a minute trying to find out themselfs..
^^ this not regarding all of you.. ^^ Just many fans..[/b]
^^ But is 'Mijac' still collatoral for the loan(s)?? This was never cleared (as what I have read).. This is the main point I have been trying to post for days.. Because if 'Mijac' is collatoral he does not have 100% control.... having ownership and control are two different things.. If he has loans still outstanding with Fortress Investments, 'Mijac' is still basically "hostage" untill they are paid off and/or Michael gets something else in replacement of 'Mijac'.. 'Mijac' has a high worth that a company like Fortress Investment. will not let go very easy.. They will want the amount it's worth, plus interest.. 18-20% that has been stated before..
It would be hard to find something worth Mijac besides his homes.. which is never safe to put for collatoral.
That is why I kept saying MJ owns 100% of Mijac but does not have full control..
(that was my mistake.. I knew 25% Sony-ATV were at stake, I miss understood that) lol!
that confuses me more though, because documents showed that Sony THREATENED Michael with his contract and paying loans and it regarded his share of ATV-SONY etc.. It's part of the big conspiracy of SONY with MJ..[/b]
For those people who have studied business and finances, It may well be that MJ has been advised to have a small load to offset his tax. Apparently it is never wise for a very weathy person to be debt free, otherwise that person will be made to pay more to the tax man than is necessary, so rich people and large businesses get round this issue by having a small debt, which they claim for on tax forms. I was under the impression this was what MJ has done.KOPV - i dont know the ins and outs of the loan, but BOA made money off the loan, no doubt. It is unclear whether MJ was having problems paying and therefore would be unfair to speculate that the reason BOA sold to Fortress was because he couldn't pay. They might've decided that the endless b.s surrounding MJ made the loan high risk, that is possible.
KOPV if you went to your local bank tomorrow and asked for a personal loan you would, in most cases, need collateral. Aveeno has established what that is for MJ so i dont have to go there. When you sign your agreement with that bank, there are always terms and conditions. MJ has payments to make on the loan at specific dates and probably specific amounts of money. If he defaults, then, and only then is there a problem.
They donot decide one day to pull the rug out and sell up his assets rather than take the payments. The upshot for MJ is he has time o make payments, the upshot for the bank is they are collecting interest on a massive loan. When its all said and done, everything cool as long as you make the payments and thats not just for michael jackson, its for any brother.
And finally depending on MJs loan terms, sometimes it works that the quicker you pay, the less interest you pay.
The potential drama i see is not having enough physical cash and we have kinda been lead to believe that has been Michaels prob for awhile now, not working and all. He has always been asset rich and most wealthy people aren't anyway, all sorts of companies and investments but they dont have $10 mill sitting around in a random bank account, just seems to be the nature of the beast. Just dont let the media fool you, MJs situations from very much from the outside does not look dire at all and if anyone is talking about money then they are talk cash on hand, not assets.[/b]
They also GOT to solve their problems with Sony/BMG till the expiration date, becuase Michael it's still tied up. And if the option to buy the 25% is regardless, that means that it can get to the negociation table along with other matters... still a good thing for them...
If Michael would resist past the date that means, hard work and more effort for Sony/BMG in convincing Michael in alowing their business to go further. Michael is the key, the one to decide their fate!! lol[/b]
yeap he has control over the mergers plans. the balls in his court. he could let sony have some sort of publishing deal with bmg but to allow that he may want sony to drop the 25% clause. or he could bascially get sony to pay off the debt interms of the money they may give him to allow them to have a publishing company with BMG. gonna be intresting to see what happens. whether we get to know what happens is a different matter[/b]
And if Mike resists few months more, the reason for dropping that 25% clause will vanish, becuase that clause will expire by the April 2008. Am I right?[/b]