Loan purchase helps Michael Jackson keep Neverland Ranch

By Associated Press

Pop star Michael Jackson sidestepped a foreclosure auction of his Neverland Ranch after an investment company bought the loan on the troubled Southern California property, a spokeswoman said Sunday.

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 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” that would “allow me to focus on the future.”

The estate in the hills outside Los Olivos once was host to 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 after 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.

In 2005 Jackson moved to Bahrain, where he had been a guest of the crown prince of the desert kingdom. He reportedly has lived overseas ever since. William Bone, founder and chief executive of Sunrise Colony Co., sold the ranch to Jackson in 1988 for $28 million.