Entertainer Michael Jackson said on
Sunday a foreclosure sale on his Neverland Ranch set for this
week was averted after a loan on the California property was
sold to Colony Capital, a large real estate investment firm.
The loan, which sources familiar with the matter said was
about $23.5 million, had been held by Fortress Investment
Group, a New York-based private equity and hedge fund group.
The 2,700-acre ranch in Santa Barbara County was slated to be
auctioned off on May 14 after Jackson defaulted on loan
payments.
In a press release, Jackson said he was in discussions with
Colony and its founder, Tom Barrack Jr, "with regard to the
ranch and other matters."
Colony, a Los Angeles-based firm that has invested more
than $39 billion since its founding in 1991, is "very
comfortable" holding the loan while it negotiates payment
terms, a person familiar with the situation said.
Representatives of Jackson and Colony declined to comment.
A Fortress representative could not be reached for comment.
The formerly high-flying singer and songwriter saw his
career slammed as the result of a child molestation trial in
2005. Even though he was acquitted on all counts, he has faced
significant financial problems in recent years.
Reuters/Nielsen
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