Foreclosure On Sony/ATV Deal Unlikely

Lawyers for Michael Jackson and a key creditor are in talks to keep the pop star from defaulting on $200 million in loans secured by his prized stake in the Beatles' song catalog, an attorney for the singer said on Monday.

 

A default on the loans, which come due on Tuesday and are held by the Fortress Investment Group would allow the New York private equity fund to seize Jackson's 50-percent interest in Beatles publishing rights valued at some $500 million.

 

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.

 

And he suggested that the possibility of imminent foreclosure on Jackson's stake in Sony/ATV was unlikely.

 

"There no doomsday, or anything like that," Ayscough said. "Nothing's going to happen tomorrow. ... At the moment people are still talking." He said a deal could be reached as early as this week.

 

He said Sony, which music industry experts believe is eager to acquire Jackson's share of the catalog, also is a party to the talks.

 

Source: Reuters