Michael Jackson’s Estate Fears His Mother Katherine’s Objections Will Torpedo Deal Potentially Worth Hundreds Of Millions For Late Pop Star's Kids
Michael Jackson’s estate fears his 93-year-old mother Katherine’s objections to a proposed deal will cause them to lose out on millions — that would go to the late pop star’s children, RadarOnline.com has learned.
As RadarOnline.com first reported, last year, Michael’s estate, run by executors John Branca and John McClain, asked the court to approve a lucrative transaction. The details of the deal were kept under seal but shared with Katherine Jackson and Michael’s children: Paris, Prince, and Blanket.
Branca and McClain have overseen the estate since Michael’s death in 2009. The only beneficiaries of Michael’s fortune are his children. However, he had a provision in his will that instructed the executors to take care of Katherine for the remainder of her life.
A couple of months after the estate presented the deal, Katherine filed an opposition to the transaction. Katherine’s reasons for fighting the proposal were noted in a sealed filing.
In response, Branca and McClain said they had worked magic since taking over control of Michael’s finances.
“The Estate was teetering on the verge of collapse, with more than $400 million in debt that encumbered Michael’s most significant assets and little or no liquidity or means to service that debt. Through creative thinking, hard work and business savvy—and, of course, Michael’s extraordinary creative legacy—the Executors transformed the MJJ Business into a profitable enterprise,” the executors said.
Branca and McClain pointed out that Katherine had issues in 2009 when they put together This is It, which they said became one of the highest-grossing concert films of all time.
The judge ended up signing off on the proposal despite Katherine’s objections. The order read, “The proposed transaction is approved and the executors are authorized and instructed to take all actions necessary to implement the proposed transaction, including but not limited to signing all contracts and performing all obligations required of the estate.”
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A couple of days later, Katherine filed an appeal of the decision which has yet to be decided.
In newly obtained court documents, RadarOnline.com has learned the estate has fears the appeal will torpedo the entire deal. Branca and McClain said “given the amount of time that an appeal will take — almost certainly more than a year … it is unlikely that this deal will be on the table for the Executors to accept at the conclusion of appellate proceedings. Offer of this magnitude are not typically left open for months or years at a time, with no certainty that they will ever close. This is particularly true here since the economics of the deal necessarily change with the passage of time.”
The Executors noted that they fear if the deal falls apart and they secure another favorable deal, one of the beneficiaries will object regardless of how lucrative.
The filing noted that one family member’s objection is not that the deal is bad but rather the family member does not want to proceed with any such transaction of the kind. One source said the verbiage used could indicate the deal regards Michael’s music catalog.
The Executors said the court should step in and help them stop the interference. Branca and McClain believe they have the right to make the deals despite any family member’s objections.
The duo claimed the loss could be greater than $400 million.