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Estate Management Report

MJJ BUSINESS IN 2009
At the time of Michael Jacksons death, the MJJ Business faced very challenging circumstances. Michael dided virtually on the eve of a sold-out and extraordinary expensive concert tour, “This is It”, exposing the Estate to substantial financial liability in the tens of million dollars. In addition, his business affairs were, to a large extent, in disarray. Among other issues, Michael had changed business managers, lawyers and personal management several times in the years prior to his death, most recently in the weeks and months prior to his death, and the transfer of files to his last team of advisors and representatives was in transitition at the time of his death. As a result, Michaels financinal and legal documnetns were scattered around the country and the location of many documents was not ascertainable as of the date of death. The Estate was embroiled in a variety of legal and financial problems that were presented, and continue to present, difficult issues whihc must be addressed effectively and efficently. Michael Jacksons assets were highly leveraged, with some of the debt in default. Since their appointment, the special adminstrators have acted promptly and decisively to identify and analyze the issues, marshal, and control the assets, resolve much of the litigation and actively contest the balance of the ligitation, aggressively take action to protect and enforce the Estates trademark and copyrights from oppurtunists worldwide, renegotiate and restructure existing financing arrangements, reducing the interest and income taxes and repaying principla, enter into unprecedented business deals that have produced, and will in the future produce, significant revenues for the Estate, and have successfully rebuilt and enhanced Michael Jacksons image with the release of the movie and song “This Is It”.
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MiJAC and SONY/ATV
11. Debt restructure. At the time of Michael Jacksons death, the primary assets of the Estate, (MiJac music and Michael Jacksons interest interest in SONY/ATV), were highly leveraged. Michael had used MiJac music as security for two loans, one issued by HSBC ("the HSBC loan") and the other issued by Plainfield Asset Management ("the Plainfield loan"). The Plainfield interest rate was ___%. The cumulative balance due at the time of Michael Jacksons death on both loans were approximately __. Both loans were scheduled to mature in 2011.

MiJac Music. In December 2009, the special adminstrators succesfully negotiated with HSBC to refinance and restructure the HSBC loand and the Plainfield loan into a new loan ("the HSBC Agreement"), with more favorable terms, including a reduction in the interest rate, which will save the Estate approximately ___% per month. In addition, the special adminstrators restructred the loan in a manner that will allow the Estate to use all of the interest payments (rather than only a portion of the interest payments) as an income tax deduction, resulting in further savings to the Estate of approximately $3 million in taxes over a five year period. The financing transaction was approved by this Court pursuant to its order entered December 8, 2009.

SONY/ATV. Michael had also pledged his fifty percent interest in SONY/ATV as security for a loan issued by Barcalys Capital. At the time of Michael Jacksons death, the balance due on SONY/ATV Loan was approximately $___ dollar. The loan matures on December 3, 2010. The loan is further secured by a guranty given by Sony Global Treasury. In exchange for securing Sony's guaranty, Michael Jackson was required to give up significant rights to control and/or sell his interest in SONY/ATV as well as granting SONY protections in the event of default.

The special adminstrators have recently completed successful negotiations with UBS to refinance the loan secured by the Estate's interest in SONY/ATV as well as extensive negotiations with Sony to complete the refinance transaction. The special adminstrators task was challenging. The negotiations resulted in an amended agreement with Sony to great benefit of the Estate and a new loan at a substantially lower interest rate for the Estate, which is locked in for the period of the time.
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THE BENEFICIARIES
Michael Jacksons assets were highly leveraged, with some of the debt in default. The mortage and utilites for Hyvenhurst had been unpaid for several months.
Michael Jackson provided sole financial support for his Minor children and was Mrs Jacksons primary source of support. The special adminstrators have endeavored to continue to meet the financial needs of Mrs Jackson and the Minor Children. The special adminstrators have done so through a family allowance for Mrs Jackson and the Minor Children, which is described in the Report of Status of the Family Allowance, as well as various other means as described below.

- At the request of Mrs Jackson, the special adminstrators expended approximately ___ on repairs and improvments on Hayvenhurst that were required in order to address substantial deferred maintenance and to accomodate the needs of the additional occupancy of the Minor Children, and provide for the security of the property and its inhabitants. The special adminstrators have continued to provide for the maintencance of Haynvenhurst, including estate management, security, and staff. The special adminstrators also purchased an automobile for the use of Mrs Jackson and the Minor Children, which is owned by an entity controlled by the Estate.

Mrs Jackson does not have any significant financial resource other than the Estate. She does not have the financial means to ______. After giving notice to and obtaining the consent or affirmation of no objection from all Margaret G Lodise, Guardian Ad Litem of the Minor Children and Joseph N Zimring, Deputy Attorney General for the California Department of Justice Office of the Attorney General, the special adminstrators loaned to Mrs Jackson ______. The loans are documented by a secured promissory note and laon agreement which provides, among other things, that the loans will be allocated to Mrs Jacksons share of the Michael Jackson Family Trust upon its funding.
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THE CREDITOR CLAIMS
At the time of Michael Jacksons death, he was embroiled in many lawsuits, including a number in which no apperance had been entered on behalf of Michael Jackson. In addition, a number of lawsuits were filed against the Estate. Sixy-five (65) Creditor claims was filed against the Estate.

(List of those who got paid in full and the more “interesting ones”).

Michael Abrams paid in full 1,419
Ayscough & Marar paid in full 31, 757
Crowe Horwarth, LLP paid in full 38, 495
Elisa Gross paid in full 3,178
Avinash Bruno Irde paid in full 8,300
Jose T Mareque paid in full 4,772
Mayer M&J, Inc Video Center paid in full 128,482
Mesereau & Yu, LLP 341, 452
Leonard Rowe paid in full 51,218

Stabler & Associates, Inc: allowed and settled
Thome Thome: no actions taken 2,300,000 00+
LaVelle Smith Jr: no actions taken 144,500
Kai Chase: paid allowed in part and settled 8,000
Raymone Bain: dismissed and currently on appeal
Universal Music Publishing Group: no actions taken 3,000
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yaazgurl said:
I don't like their claim that they restored Michael's image and brand with This Is It and I'm not sure about their claim that This Is It is the first Michael Jackson song to make the chart in thirteen years.
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well, the film did help restore Michael's image, especially all the crappy reports and fake coroner reports after his death, but you're right, it definitely wasn't the first single to make the charts in 13 years

Hot 100
=====
2001- You Rock My World #10
2001- Butterflies #14
2003- One More Chance- #83
2008- Wanna Be Startin' Somethin' 2008 #81
2009- This Is It- #118

R&B
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2001- You Rock My World- #13
2001- Butterflies #2
2002- Heaven Can Wait- #72
2003- One More Chance #40
2009- This Is It- #18

and Michael's songs have never left the UK charts
 
mj_brainiac said:
well, the film did help restore Michael's image, especially all the crappy reports and fake coroner reports after his death, but you're right, it definitely wasn't the first single to make the charts in 13 years

Hot 100
=====
2001- You Rock My World #10
2001- Butterflies #14
2003- One More Chance- #83
2008- Wanna Be Startin' Somethin' 2008 #81
2009- This Is It- #118

R&B
-----
2001- You Rock My World- #13
2001- Butterflies #2
2002- Heaven Can Wait- #72
2003- One More Chance #40
2009- This Is It- #18

and Michael's songs have never left the UK charts
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The film didn't restore MJ's image in my viewpoint and he was loved by millions. He was not this forgotten celebrity that they are painting.
 
selling out 50 shows restored his image.but yeah interms of the crap thrown after june 25th it restored it in that sense
 
yaazgurl said:
The film didn't restore MJ's image in my viewpoint and he was loved by millions. He was not this forgotten celebrity that they are painting.
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he was definitely loved but here in the states, it did restore his image (along with Thriller 25 a year earlier) to some extent
 
mj_brainiac said:
he was definitely loved but here in the states, it did restore his image (along with Thriller 25 a year earlier) to some extent
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I don't like the credit that they're trying to take for MJ's image. You just mentioned a project that MJ worked on himself. He sold out 50 shows and could have done a lot more. The movie may have cleared up some rumors but it didn't singlehandedly restore his image.
 
Butterfly26 said:
Why did TMZ feel the need to put this on display? People love to flap their cheecks and Im not talking about the ones on their face. I hope you guys expressed your feelings on the matter. UGH. TMZ makes me ill.
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Is that a joke? lol Michael Jackson is the reason TMZ is now in the top 500 websites of the world list! Come on....:cheeky:
 
mj_brainiac said:
Are they trying to pay off the loan?
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its been paid off for the last few years. loans finish at the end of this year and early 2011. the question is if bain and others did such a great job refinancing as they claim back around 06/07 how come the estate came in an re-negotiated the deals to better rates. doesnt say much for her
 
well, in the eyes of general public the film did help to "restore" his image or whatever you put it... I heard a lot of comments from all kinds of people who were in awe after watching the film and they praised Michael and were shocked even because they were so brainwashed by the tabloids they didn't think of Michael as a person and as a performer anymore, they just considered him this weird person. But the film did help to change their opinion about Michael.
 
JMie said:
well, in the eyes of general public the film did help to "restore" his image or whatever you put it... I heard a lot of comments from all kinds of people who were in awe after watching the film and they praised Michael and were shocked even because they were so brainwashed by the tabloids they didn't think of Michael as a person and as a performer anymore, they just considered him this weird person. But the film did help to change their opinion about Michael.
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Completely agree! :)
 
JMie said:
well, in the eyes of general public the film did help to "restore" his image or whatever you put it... I heard a lot of comments from all kinds of people who were in awe after watching the film and they praised Michael and were shocked even because they were so brainwashed by the tabloids they didn't think of Michael as a person and as a performer anymore, they just considered him this weird person. But the film did help to change their opinion about Michael.
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Well put.

:clapping:
 
JMie said:
well, in the eyes of general public the film did help to "restore" his image or whatever you put it... I heard a lot of comments from all kinds of people who were in awe after watching the film and they praised Michael and were shocked even because they were so brainwashed by the tabloids they didn't think of Michael as a person and as a performer anymore, they just considered him this weird person. But the film did help to change their opinion about Michael.
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yup agree completely.
 
Butterfly26 said:
Why did TMZ feel the need to put this on display? People love to flap their cheecks and Im not talking about the ones on their face. I hope you guys expressed your feelings on the matter. UGH. TMZ makes me ill.
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Love you:clapping:
 
How can TMZ get a hold of the management report? The Estate of Michael Jackson is not a public entity. The only recipients to the reports are the beneficiaries, not the public.

Let's be fair here. I don't think the administrators portrayed Michael negatively in order to bring themselves up. The business situations mentioned are facts. This management report is fairly written.

Based on the report, it seems the Estate has made significant progress in refinancing the loans and paying off them. The financial condition is improved significantly and the Estate is not forced to sell any assets.

I think John Branca and John McClain are doing great jobs. This Is It was a very successful project, both finacially and critically.

Now, I think the Estate should take action against TMZ for leaking private confidential matter to the public.
 
Michael could have "restored" his own image. Not that it needed restoration. He sold out fifty shows, and a film could have been made from those performances that would have been much better and more complete than TII. Too bad he never had the chance.

So much for Tohme "working for free," (as he once said). . . Guess not?
 
Why everybody and their mama gotta know MJ's business is beyond me!
 
actually, i feel guilty after reading the excerpts. it's an invasion of privacy. i don't want strangers to read into my financial situation. michael's business should remain private.
 
love is magical said:
How can TMZ get a hold of the management report? The Estate of Michael Jackson is not a public entity. The only recipients to the reports are the beneficiaries, not the public.

Let's be fair here. I don't think the administrators portrayed Michael negatively in order to bring themselves up. The business situations mentioned are facts. This management report is fairly written.

Based on the report, it seems the Estate has made significant progress in refinancing the loans and paying off them. The financial condition is improved significantly and the Estate is not forced to sell any assets.

I think John Branca and John McClain are doing great jobs. This Is It was a very successful project, both finacially and critically.

Now, I think the Estate should take action against TMZ for leaking private confidential matter to the public.
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no..the spirit of how this was reported gives the impression that Michael was bankrupt and they saved him. nobody could survive what spirit that report generates. they've been saying that stuff for years. and TMez, himself said that the majority of the lawsuits were frivolous.

it's easy to portray anything you want about Michael. that apparently has been proven.

but you can never portray him as bankrupt, because that never happened. fifteen years of these 'reports' should have long since buried Michael's financial empire, by now, if they were legitimate. fifteen years.

what bothers me, is that i didn't know about blockbuster video, over there in the other thread. it's bankrupt. the media never said anything about that.

the media has put disclaimers in their reports on Michael, over and over. you just have to look for them. they make it hard on purpose, but they're there. because they don't know.

the question that needs to be asked is this.
why should a report be believable, if a law seems easily breakable by tmz?
 
144 said:
no..the spirit of how this was reported gives the impression that Michael was bankrupt and they saved him. nobody could survive what spirit that report generates. they've been saying that stuff for years. and TMez, himself said that the majority of the lawsuits were frivolous.

it's easy to portray anything you want about Michael. that apparently has been proven.

but you can never portray him as bankrupt, because that never happened. fifteen years of these 'reports' should have long since buried Michael's financial empire, by now, if they were legitimate. fifteen years.

what bothers me, is that i didn't know about blockbuster video, over there in the other thread. it's bankrupt. the media never said anything about that.
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i agree with you. michael could never be bankrupt. his assets generated constant cash inflows. however, he's too trusting. too many people took advantage of him in his entire life. the financings he got into were not negotiated to his advantage.

from the excerpt that i read, i don't feel the language used is intended to portray michael negatively.

it's so wrong that the bankruptcy of blockbuster, a public company, is not widely reported. however, the management report of the estate of michael jackson is disseminated to the public. this report is never intended to be read by parties other than the beneficiaries.
 
love is magical said:
actually, i feel guilty after reading the excerpts. it's an invasion of privacy. i don't want strangers to read into my financial situation. michael's business should remain private.
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I feel so too. All these important documents leaked on the internet.... is a total invasion of privacy. But this is something that still is difficult to prevent that happening. :(
 
This.
T
Autumn II said:
Michael could have "restored" his own image. Not that it needed restoration. He sold out fifty shows, and a film could have been made from those performances that would have been much better and more complete than TII. Too bad he never had the chance.

So much for Tohme "working for free," (as he once said). . . Guess not?
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love is magical said:
144,000: good point. is this report valid and authentic at all? how can the law be so easy to brokern by tmz?
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yeah...over there in the discussion section, an objective person who knows law, discovered that actual law can be interpreted by the media to not be what it actually is, when it comes to MJ reports, and they always portray him negatively, and they're not going to stop. in the discussion section there is a link to how the interpretation of the law was twisted, as far as Michael 'paying off' kids for their silence. so, official info can always, and will always be twisted, by the media, to put MJ in a negative light, in lying fashion.(never mind, in this case, never hearing a full on sit down interview with the estate executors.) we just have to get used to it. ....or keep on fighting the good fight against the media, and never get used to it.

meanwhile, we can wait a few years for an objective person who knows about business, to come up in the discussion section, to objectively disseminate info on THIS situation, that, when the truth is discovered, will favor Michael's way of doing things, as was done with that extortion case against Michael. and the beat goes on.
 
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