US pop star Michael Jackson is teetering on the brink of personal insolvency, with creditors unwilling to extend him fresh loans.
Citing close financial advisers, the New York Times reported Thursday that Jackson faced an "immediate cash crisis" over a 70-million-dollar loan that becomes due on Tuesday and which he has no money to repay.
Over the long term, the advisers said the child molestation charges levelled against Jackson, and allegations that the black separatist group Nation of Islam is helping run his affairs, were scaring off banking creditors.
At least two groups of investors have backed out of proposed business deals with Jackson because of the molestation charges, which have also hurt the singer's ability to earn income from records or concert tours, the newspaper said.
Jackson faces a trial on seven counts of performing lewd and lascivious acts with a 13-year-old boy. Each charge carries a prison sentence of between three and eight years.
Despite infingement of privacy, a photograph of the 13-year-old boy was taken as he was leaving court.
Jackson's most valuable asset is the Beatles catalogue he owns jointly with Sony Music Entertainment as part of the ATV Music Publishing catalogue, with an estimated value of up to 900 million dollars.
State financial filings in California show the extent of Jackson's debt to the Bank of America.
On top of the 70-million-dollar loan, there is another 200-million-dollar loan guaranteed by the ATV music catalogue. The Jackson advisers who spoke to the Times said the singer was leveraged for an additional 250 million dollars to buy other music libraries by other stars.
Despite the extremely vulnerable state of his finances, the newspaper quoted close Jackson associates as saying he was spending about two million dollars a month.
