The Jackson Effect

Read for yourself, but this story might spell the end for Michael Jackson, regardless of whether or not he's acquitted.

Michael Jackson was reportedly shocked Wednesday when he received word that Bank of America had sold him out.

I can tell you exclusively that Bank of America has sold Jackson's $270 million in loans to a private hedge fund. The group is called Fortress Investments, located in Manhattan.

Their principals are Peter L. Briger Jr., formerly with Goldman Sachs, plus Wesley R. Edens, Robert I. Kauffman, Randal A. Nardone and Michael E. Novogratz — all with substantial backgrounds in finance.

The firm's specialty, according to its Web site, is rescuing "undervalued, orphaned and distressed investments throughout the United States, Western Europe and Japan."

With this sale, Fortress now stands to become a 50 percent owner in Sony/ATV Music Publishing if Jackson should default on the loan.

Technically, he is already in default. Furthermore, Jackson's deal with Sony comes to an end this December, at which time the company can buy him out for $200 million if he can't come up with a new buyer or enough money to pay back the loan.

The Fortress deal is also rumored to include a $70 million loan Jackson has against his own publishing catalog, called MiJac.

Jackson was apparently shocked, according to sources, when he got word about the sale on Wednesday morning from Bank of America.

He had previously rejected a deal that would have netted him money, cleared his debt and left him in good shape with people who were longtime friends. But now he's in business with strangers.

Still in the equation, however, is grocery king Ron Burkle. He sent a letter to Bank of America several days ago saying that he needed 90 days to help Jackson refinance.

Burkle could still be Jackson's white knight and bail him out from Fortress, but so far he's done nothing.

In the meantime, Jackson remains cash-poor as he continues to stand trial for child molestation here in Santa Maria.

They actually sold Jackson's debt to someone else. I didn't even know you could do that. My guess is that even if Jackson is acquitted, his career is even more over than it was before the new charges were filed. Furthermore, I'd be willing to bet that he'll lose his shirt. No matter what the outcome, I'd say things are looking pretty grim for Michael Jackson.