Jackson's Neverland saved by equity firm

Michael Jackson will keep his Neverland Ranch after private equity firm Colony bought out the singer's £12 million ($23.5 million) debt on the property.

In a statement, Jackson said: "I am pleased with recent developments involving Neverland Ranch and am in discussions with Colony and Tom Barrack (Colony's founder and chairman) with regard to the ranch and other matters that would allow me to focus on the future."

The singer was told that his California home could be foreclosed and auctioned off if he couldn't pay $25 million in arrears.

In March Jackson's lawyer L. Londell McMillan claimed that the star had made a "confidential" agreement with hedge fund Fortress Investments that would allow him to keep Neverland.

The 49-year-old popstar hasn't lived at Neverland since 2005 when he was acquitted of child molestation charges.