Michael Jackson made a significant financial decision by agreeing to use a portion of his ATV catalog stake

In April 2006, Michael Jackson made a significant financial decision by agreeing to use a portion of his ATV catalog stake, valued at approximately $1 billion, as collateral for his loans. At that time, Jackson was facing severe financial difficulties, with debts amounting to $270 million owed to Bank of America. The bank subsequently sold these loans to Fortress Investments, which provided Jackson with a new loan of $300 million, featuring reduced interest payments. This strategic move was advised by Jackson's financial managers, who urged him to divest part of his stake to prevent bankruptcy. Additionally, Sony Music held an option to purchase half of Jackson's stake at a predetermined price. As a cost-cutting measure, Jackson closed the main house at Neverland Ranch and relocated to Bahrain, where he lived under the hospitality of Abdullah. This period marked a tumultuous time in Jackson's life, as he navigated through ongoing lawsuits and financial instability.