Michael Jackson avoids losing his Neverland Ranch
The entertainer's personal Los Olivos dream world had been set for a foreclosure auction, but an investment company bought the loan.
Moon-walking pop star Michael Jackson sidestepped a foreclosure auction of his Neverland Ranch after an investment company bought the loan on the troubled Los Olivos property, a spokeswoman said today.
The loan purchase by Colony Capital LLC was the latest deal to keep the 2,500-acre ranch from being sold off. In March, Jackson, 49, reached an agreement with his creditors, Fortress Investment Group, to postpone an auction until this week. Colony spokeswoman Caroline Luz said the auction has now been canceled.
In a statement released by a spokesman, who identified himself as B. Michael, Jackson said he was "pleased with recent developments involving Neverland" which would "allow me to focus on the future."
The estate in the hills near Santa Barbara once hosted thousands of children and featured a Ferris wheel, a roller coaster, game arcades, and a zoo with elephants, giraffes and orangutans. It reportedly fell into disrepair after Jackson left the area following his acquittal on child molestation charges in 2005.
Jackson has struggled to pay his debts in recent years. He sold a large portion of his music publishing catalog, which includes Beatles hits, and was sued by former business associates, an accountant and other employees.According to court testimony, Jackson was spending $30 million more a year than he earned, acquiring lavish homes and a growing collection of exotic animals--many of them kept at Neverland. At the same time, his music sales struggled because of the molestation allegations.
In 2005 Jackson moved to Bahrain, where he had been a guest of the crown prince of the desert kingdom. He has reportedly lived overseas ever since.
William Bone, founder and chief executive of Sunrise Colony Co., sold the ranch to Jackson in 1988 for $28 million.
Hector.becerra@
latimes.com
