Los Angeles-based buyout firm Colony Capital has come to the rescue of world-renowned pop star Michael Jackson with the purchase of a distressed loan to his Neverland Ranch in California, averting a foreclosure auction of the property set for this week.

The eleventh hour rescue by Colony Capital comes two months after Jackson, who, has struggled to pay his debts over the last two years, struck an agreement with creditor Fortress Investment Group, the alternative investment firm, to postpone the auction.