collateral Bank of America Fortress Investments Sony Neverland Ranch Bahrain
In April 2006, Jackson agreed to use a piece of his ATV catalog stake, then worth about $1 billion, as collateral against his $270 million worth of loans from Bank of America. Bank of America had sold the loans to Fortress Investments, an investment company that buys distressed loans, the year before. As part of the agreement, Fortress Investments provided Jackson a new loan of $300 million with reduced interest payments (equivalent to $440 million in 2022). Sony Music would have the option to buy half of his stake, or about 25% of the catalog, at a set price. Jackson's financial managers had urged him to shed part of his stake to avoid bankruptcy. The main house at Neverland Ranch was closed as a cost-cutting measure, while Jackson lived in Bahrain at the hospitality of Abdullah. At least thirty of Jackson's employees had not been paid on time and were owed $306,000 in back wages. Jackson was ordered to pay $100,000 in penalties. Jackson never returned to Neverland after his acquittal.
