Jackson has ‘two weeks to stave off €228m meltdown’
"It's a meltdown Michael's life is on the line, physically, and his finances are in ruins because he has listened to the wrong people," a source told the New York Daily News.
It was also reported that Jackson's family was planning an emergency trip to Bahrain to try and get the pop star into rehab for a prescription drug addiction.
It is believed Jackson took out two loans, one for €169m and the other €59m, and secured them with Neverland and the Beatles catalogue.
He reportedly defaulted on the smaller loan in April then worked out a payment plan with Fortress Investments.
But Jackson defaulted again in October and foreclosure is set for December 20, the source said.
Jackson has also reportedly failed to make payments on a €1.86m second mortgage he took out on his parents' Encino, California, mansion, which is also now facing foreclosure.
The source said a phone call from the Jackson children's nanny to Randy Jackson raised concerns the musician is bingeing on drugs.
"Grace basically said she can't handle him alone," the family source said. "The family is in a tailspin."
Jackson, 47, took his three children to Bahrain shortly after his acquittal on child-molestation charges last June and has since announced he has no plans to ever return to live in the United States.
A spokesperson for the singer denied Jackson had a drug problem and called the source's story a "total lie."
