Michael Jackson Settles Breach of Contract Claim
Reuters News
18 minutes ago
NEW YORK (Reuters) - Debt-laden pop singer Michael Jackson reached a settlement on Monday over a breach of contract claim by New Jersey-based finance house Prescient Capital.
Prescient sued Jackson and his MJ Publishing Trust in July 2005 for $48 million alleging breach of contract after providing financial advice to Jackson and his various companies.
Prescient said it helped Jackson secure a commitment for a total of $537.5 million in financing to enable him pay off a $272.5 million debt to Bank of America and to possibly exercise his 'Put Option' to purchase the 50 percent interest in Sony/ATV Music Publishing he does not currently own. Prescient secured funding from New York-based hedge fund Fortress Investment Group.
Sony/ATV, the world's fourth largest music publisher, is jointly owned by MJ Publishing Trust and Sony Corp (NYSE:SNE - news). Among its valuable catalog of songs are most of the hit songs of the Beatles and songs penned by Jackson himself.
Michael Jackson has been reported to be struggling with debt which saw him seek refinancing to avoid losing publishing rights to his valuable catalog of songs, which also includes songs by Bob Dylan and John Mayer.
A spokesman for Jackson told Reuters the settlement means that both the Beatles and Jackson's song and others in the library are "safe and sound."
Court documents showed a voluntary dismissal of the breach of contract claim.
The terms of the settlement were not disclosed in filings at the U.S. District Court Southern District of New York.