Neverland

A grease-filled barbeque torpedoed a big party at Michael Jackson's Neverland Ranch this AM.

A large group was there for the shindig, when the staff lit the BBQ to get the coals hot. We're told a grease build-up on the system ignited the hood system and caused some panic.

Three engines from the Santa Barbara County Fire Dept. arrived but the blaze had already been put out.

The BBQ was cancelled.

El Pollo Loco anyone?

We're told some fans camped outside the gates of Neverland on Figueroa Mountain Road last night. The fans show up in waves throughout the day -- gathering for a bit, bringing flowers, holding signs, singing songs ... then they eventually leave.

The 30-minute Channel Island Helicopter flights are set to take off June 24th and 25th -- exactly two years since Jackson died after a Propofol-induced cardiac arrest.

During the flight, passengers are encouraged to honor the late entertainer by chucking his favorite flower -- a red rose -- out of the helicopter mid-flight ... over nearby Zaca Peak.

TMZ has learned Colony Capital wants to develop a business plan to turn Neverland into a small music institute -- similar to The Juilliard School in NYC. The plan is to teach teens all aspects of music, including writing and performing.

Colony wants to turn the property into a campus, in which scores of teenagers -- rich and poor -- can learn the trade that made Michael Jackson a legend.

There are two big stumbling blocks. The first is making sure Santa Barbara County will sign off on such a project.

Butler Amusements has six different attractions, but one of them is permanently installed at the California State Fair & Exposition in Sacramento, CA. The other five, however, are totally up for grabs.

An amusement company bought the ride from Neverland and rents it out to fairs and carnivals around the country.

The Michael Jackson estate just laid the smack down on a bunch of Michael Jackson wannabes -- all over access to Neverland.

The wannabes are actually in a Michael Jackson tribute band named "Neverland" -- a name the MJ estate feels is a violation of its trademark.

Long story short: The MJ estate wrote a scary legal letter demanding the band change its name ... and it did ... to Foreverland.

Here's the catch. "Foreverland" still owns the rights to the domain name neverlandsf.com -- and it's willing to give it back to Camp Jacko ... for a cool $30,000.

In short, the Jackson estate told the band to "beat it" and gave them until February 2011 to begin forwarding all web traffic to the new foreverlandsf.com ... or else.

The FBI apparently went around the world trying to make a case against Michael Jackson for alleged child molestation.

According to documents just released by the FBI, in 1993 the LAPD and Santa Barbara County Sheriff's deputies "Plan to travel to Manila, Philippines... for the purpose of interviewing (names deleted) concerning their knowledge of accusations against Michael Jackson of sexual abuse of young boys."

We know the people sought to be interviewed were a man and woman who had worked at Neverland from 1988 - 1990 and allegedly witnessed molestation.

According to docs, an FBI special agent was involved in the Manila trip.

And another doc states a legal attache for the U.S. Embassy in London was sending information back home regarding sexual misconduct by Jackson in England ... specifically, a phone call to a teenage boy.

A British law firm is the latest to file a creditor's claim against Michael Jackson's estate, and it involves the "sale of Neverland."

There had been rumors Jackson put the ranch up for sale, but they were never confirmed. Now the law firm of Atkins Thomson Solicitors in London is asking for $209,204.36.

The services the firm claims to have performed involved "General discussions re Michael Jackson, personal and professional situation dealing with Colony Capital, Tohme Tohme, Frank Dileo, and Others, Work in Relation to the Sale of Neverland."

The firm also claims to have done work with Jackson's U.S. lawyers and AEG. The firm also did legal work for the London concerts.

Sources connected to the situation tell us MJ fell in love with the 18,020 square foot estate back in 2001 and actually entered into escrow -- but the deal fell through because Jackson ultimately couldn't afford the place.

But recently, Michael was trying to work out a new deal with the owners in the hopes of coming into enough cash to score the place after his "This Is It" concert series in England.

A source tells TMZ: "Jackson brought his kids to see the house and they fell in love with it ... They begged him to buy it."

The kids' favorite part? We're told they were all fired up about a secluded area under the house which was nicknamed the "Bat Cave."

Sources say Jackson had hoped to use the land to recreate as much of Neverland as he legally could, but as we all know ... he never got the chance.

TMZ has reviewed financial documents that show MIchael Jackson's cash flow was in the red zone. Jackson's liquid cash totaled .05% of his net worth.

According to the documents obtained by TMZ, Jackson's net worth was estimated at $1,360,839,979 on July 31, 2007. It's a fortune, to be sure ... but of that $1,150,000,000 is the Sony-ATV Publishing Trust (Beatles Catalog).

As for cold, hard "Cash in Bank" -- $668,215. Jackson could blow through that amount in a trip or two to the antique store.

The other assets:

-- Real property $73,475,000 (Neverland valued at $66,875,000, Encino Home valued at $6,600,000)
-- Restricted cash $10,696,764 (this is a cash reserve to pay interest on loans)
-- Media Archival materials $20,000,000
-- MJ Publishing Trust $85,000,000
-- Professional equipment $1,000,000
-- Automobiles, antiques, collectibles & other personal property $20,000,000

Combined assets total $1,360,839,979.

As for liabilities, the big ticket item is Neverland -- $323,000,000. The description "Notes payable to Fortress are collateralized by Mr. Jackson's interest in the Sony-ATV Publishing Trust and a partial security interest in the Los Olivos, California (Neverland) property. Additionally, as of March 31, 2007, the bank holds restricted cash in the approximate amount of $7,803,621. With other liabilities, the sum comes to $331,000,000."

Jackson's bottom line net worth was listed at $1,360,839,979. But the cash flow is pretty stunning.

Dr. Alex Farshchian wrote Michael Jackson a letter -- dated July 21, 2002 -- in which he writes, "Buprinex (sic) is the potent narcotic I told you about last week. It is just like the D but better." Buprenex is an injectable narcotic painkiller.

During a search of Neverland, Santa Barbara County Sheriff's deputies seized a scribbled note -- which may have been written by Jackson and found around his drug stash -- that says "Buprenex does the same as demerol, the only difference is you can't become an addict on Buprenex." The note refers to Buprenex as "synthetic demeroll (sic)." It goes on: "2 viles, I would feel safe having it in case of axident (sic)."

Our research shows if Buprenex is taken for long periods of time or at high doses, it can become addictive.

The doctor refers in his letter to a "5-7 day program that offers you the solution." The doctor does not explain the program.

As far as drug use is concerned, Joe says he didn't know anything about it but said whatever Michael took he did so he could "relax and sleep."

Everyone's speculating on Michael Jackson's funeral. We know three things for sure.

-- it won't be until next week
-- it will not be at Neverland
-- it will be in the L.A. area, and the Staples Center is an option but it hasn't been decided.

Beyond that -- the family still hasn't made its decision.