MICHAEL Jackson is facing a crisis after being ordered to repay a pounds 40million loan in four days, it was claimed yesterday.

His financial advisers allegedly admit he has no money to meet the demand and wants the time-limit extended until the end of next year.

The 45-year-old singer – reportedly with a second pounds 105million loan – is said to scraping together his last reserves as he continues to pile up debts.

Jackson is on bail after pleading not guilty to seven charges of molesting a child under 14.

His lawyers are due in court today to set a date for a preliminary hearing.

The New York Times, claiming to have spoken to several of his advisers, says he is anxious to extend his pounds 40million Bank of America loan until December 2005.

But he has been told that if he defaults, the hedge fund offering backing will take over the Jackson-music catalogue.

It includes his hits such as Billie Jean and Beat It and the Beatles collection of about 250 songs.

The Beatles element alone, owned with Sony, is worth up to pounds 500million.

Sources claim that the charges against Jackson, and allegations that black separatists are involved in his affairs, have damaged his earning power.

His reported second pounds 105million loan is guaranteed by his ATV Music Publishing catalogue.

But Jackson’s music manager Charles Koppleman denied he was in trouble. Like other wealthy people, the star often renegotiated debts.

He added: “Michael has the ability to generate huge sums of money.”

Al Malnik, a Miami businessman helping with Jacko’s finances, said they were “working toward a positive resolution”.

Jackson currently rents a pounds 38,000-a-month home in Beverly Hills.