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As promised before with Windy09 's tremendous help now we have the MJ Estate second accounting in it's 96 pages of glory (omitted persons given notice section)

The link to document is : http://www.scribd.com/doc/101284813/mj-estate-second-accounting

I will also embed it to the end of this post

My brief summary follows but please keep in mind that I'm not an accountant. We actually welcome discussion and information from knowledgeable parties about accounting

Summary: 

Gross earnings as of May 31, 2012 is $475 Million. 

Breakdown of $475 Million as follows
- $310 Million gross earnings between June 2009 – October 2010 (first accounting period)
- $134 Million gross earnings between November 2010 – December 2011. (second accounting period)
- $30 Million gross earnings between January 2012 – May 2012.

 

Alll debt is current

Hayvenhurst mortgage paid

$65 Million of Mijac debt is paid and Estate expect to pay it in full by the end of 2012.

Estate is not in a position to be closed yet, Executors asking for administration of the Estate to be extended for one more year. 

The only sale happened was some tangible property sold to Richard LaPointe per the settlement agreement in Julien’s Auction lawsuit. Schedule H lists all the items LaPointe got per settlement agreement.

Hayvenhurst is stated that “it will be maintained long term for the benefit of the family”. Renovations are still ongoing.

Katherine is asking for onetime payment of $205,401 to cover her professional fees occurred in 2011. Katherine is also asking for additional $34,700 per month to pay for her accountant and lawyers as well as to cover the expenses of family house in Gary Indiana and a residence in Las Vegas. Estate is asking the judge to allow this onetime payment and monthly increase. 

12 Inventory value appraisals are done showing property valued at $50,677,002. Estate says additional personal property was discovered in Las Vegas and at Rock n Roll and Grammy Museum which is in total believed to be $6,700,000. 

Estate’s main assets are 50% share in Sony/ ATV, 100% share in Mijac, Michael’s name and likeliness, Neverland and trademarks. 

MJ Business activities consists of 2 Cirque shows (second resident show is scheduled to open in June 2013), Ubisoft MJ Experience game, multiple album deal with Sony, commercial endorsements and a possible film and documentary about Michael Jackson

At the time of his death Michael was facing at least 6 lawsuits. Executors have been part of at least 15 lawsuits. 4 of them are still active, the rest have been resolved favorably for the Estate. Estate has also faced 65 creditor claims. 

Estate is also employing multiple law firms around the world to protect Michael’s copyrights and trademarks. Second accounting lists 19 law firms (all around the world) and over $13.5 million in legal costs. 

Schedule A (beginning) and Schedule I (end) shows the list of tangible property and business interest of Michael and now MJ Estate

In addition to Hayvenhurst (valued at $4.1 M) and a condo (valued at $315 K), Michael (and now his Estate) has 87.5% undivided membership in Neverland. 

Schedule I shows by the end of December 2011, personal tangible property of Michael valued at $13 Million and MJ Estate cash (or equivalent) at $19 Million. 

Schedule D shows net income from trade or business during second accounting period (Nov 2010- Dec 2011) at $106,734,448. 

Payments to Katherine and MJ’s kids are as follows (Nov 2010- Dec 2011)

Kids allowance $2,139,194
Katherine allowance $470,814
Calabasas residence expenses $436,187
Condo payments $15,569
Hayvenhurst improvements $73,962
Taxes on properties $144,605
Insurance (health and property) $106,033
House employees $658,915
Katherine lawyer fees $233,911
Guardian ad litem $ 54,478
Utilities costs $53,211
Security $654,414
Repair & Maintenance $194,127

Total $5,205,516 

Estate has also given multiple loans to Katherine

Loan 1 to Katherine $235,000
Loan 2 to Katherne $250,000 
Loan 3 to Katherine $75,000
Loan 4 to Katherine $6,000,000 (for Katherine's debt to Segye Times)

Total loans to Katherine $ 6,560,000

Total paid to Katherine and kids equal $ 11,765,516 ( $5,205,516 + $ 6,560,000)

Estate paid $50,862,363 in taxes and licenses. 

Estate has an archiving project ongoing that they paid $789,450. They paid over 1 million dollars for storage of Michael’s property. Estate employees were paid $443,640. Estate paid $442,774 for public relations.

Total Co-executive & creative director compensation is $5,214, 933. The companies’ tables also show a $2,971,982 payment as Co-executive and creative director compensation, however I do not know if this is included in the Schedule G compensation of $5,214,933 or if it is a separate payment. 

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Below is Memefan's addition

 

Ivy's summary is on point, i think it's important for all to understand that the estate won't be "debt-free" at the end of 2012. The Sony/ATV debt (300M before it was refinanced) is still there...The estate seems to have a payment schedule with Sony that wasn't made public. I am sure it is being paid, we are just not privy to all the information.

We can speculate payments are taken directly from Sony projects' royalties, because I looked over all RECEIPTS, and there is nothing from Sony. That's what led me to believe payments are taken directly to pay off the 300M loan. 

Interesting Tidbits: 

1) Schedule A (page 3 of 65): 
Trust, Bonds & Stocks were undervalued in the first account by $ 144M. Probate referee had originally valued these items at $75M, but their value were adjusted to $219M.

2) Schedule A 
MJ / Estate has a 25% interest in GR&F Colfax Partners (I was unable to find much info on the company)

3) Schedule A:
No principal payment on the two smaller loans (250K & 235K) Katherine Jackson had received last year

4) Schedule A:

Last year, and again this year, MJ's 50% interested in Sony/ATV is listed as N/A.

Speculation: if we add the $500M estimated value of MJ's S/A share to his property on hand at the end of December 2011, we get close to $1B (not taking liabilities into consideration). Keep in mind, Jackson International, MJJ Artistic AND Neverland are listed at a nominal value of $1.

5) Schedules A & I (p52 of 65):

The estate dissolved / merged the following companies:

History Tours, History Tours ii, 99 Spanish Gate Drive, Branson Media group, Monte Cristo Employment, Nation Comics, Triumph Multimedia Corporation, MJJ Legacy, MJJ Kingdom,TTC Touring Corporation and MJJ Prodution LLC (not the corporation).
,
6) Schedule J (p55 of 65)

Loan Principal balance of $22M as of December 31st, 2009. At the end of December 2011, they had accrued interest on that loan for $67K. 
Speculation: This might be the Mijac loan
Schedule G (p48 of 65) shows loan payment of $34M for the year.

7) I haven't been able to locate the $30M that was transferred to the MJ Family Trust. It might have been done after, I can't recall when the request was submitted to the probate judge.

8) Schedule C-9 (p65 of 65)

Gross revenue in MJ ATV Trust: $17M and $9.5M used to pay debt

9) Schedule K (p56 of 65)

Last year, MJ.com sold 550 copies of the Opus and paid $82.5K in royalty to the estate

Funny: On december 7th 2011, $120K was deposited in estate account. They don't know where/who it's from so the bank is researching. 

10) Schedule G (p45 of 65)

Executors compensation appears in Other Business Expenses 2.9M & in Other Disbursements 5.2M for a total of 8.1M