MJ had tons of money tied up in his publishing ownership
AEG would've sued him and forced him to sell his Sony ATV catalog, so they could've easily recouped their money
I'd say the evidence produced during the 2005 trial contained in letters found at Neverland paint a different picture. Apparently in 2006, Jackson offered Sony the option to buy half of his 50 percent stake in Sony/ATV, allowing the singer to refinance $300 million of loans.
It was said MIchael had mortgaged the catalogue, so AEG would have been at the end of the line if they had been forced to go in that direction.
If he had soooo much money then funding the loan on Neverland would have been a doddle.