A court-ordered sale of artwork by Michael Jackson that was planned for August 3 at King’s Auctions in Las Vegas was abruptly halted at the eleventh hour when an entity associated with the owner of the property suddenly declared bankruptcy.

The Jackson-Strong Alliance LLC filed for protection under Chapter 11 of the bankruptcy code in U.S. District Court, Central District of California. The alliance, which is overseen by Sir Brett-Livingstone Strong, an artist and former friend of Jackson, was ordered to sell the artworks—120 pieces described as “museum collection” artworks according to the bankruptcy filing—to satisfy a $3.25 million debt owed to Dallas-based firm Vinson Investments.

The JSA filing was made a day before the planned sale, on August 2. Vinson was listed among the 20 largest creditors as was iconic singer Cher, under the full name Cher Allman. She is owed $1 million, according to the filing.

An attorney for Vinson did not immediately respond to request for comment. Strong’s attorney Brad Patterson, specified that he is not the bankruptcy counsel and stated that his client has not filed a petition in bankruptcy, but that JSA has done so.

“Although I am not bankruptcy counsel, we look forward to an expedited proceeding and all creditors being paid in full,” he told me in an email.

According to a representative for King’s, JSA filed for bankruptcy the day before the auction at 5:50 p.m. as a last-minute effort to halt the auction and hold on to Michael Jackson’s art collection.

The representative claimed that Strong also filed bankruptcy in 2007 to wipe out $40 million in debt, adding that “there are many questions here regarding the legitimacy of the Friday filing.” Asked about this, his attorney Patterson said: “I don’t respond to factually incorrect rants.”

In late July, the  Superior Court of Los Angeles, Santa Monica division ordered the sale of the Jackson artworks to be held on August 3 by King’s Auctions.

According to King’s: “JSA/Brett Livingston Strong owes millions and used the MJ collection as collateral. The lien holders were to be paid through the courts from the auction proceeds, Vinson Investments, ex-wife Monica Strong, and other creditors with liens against Strong. Attorneys believe this is just another tactic by Brett-Livingston Strong to delay once again after seven years of litigation.”

Asked what will happen to the artworks now, the King’s representative said: “There will be another auction date set!”

King’s is still offering the giant throne featured in a segment of the 2014 Billboard Awards honoring Jackson. “The throne came from another source. It was unsold due to the auction halt and is still available for purchase,” according to the company.

As reported previously by Artnet News, Jackson and Strong were first acquainted in 1979 and embarked on a loose collaborative friendship that lasted until the pop star’s death in 2009. Strong claims that Jackson assigned him the copyrights to his artworks before his passing.

But the Jackson’s estate has voiced doubts over the authenticity of the works in the sale. A representative for the estate told TMZ that they do not accept the sketches as authentic and have relayed their concerns to the auction house.

According to King’s, the lawyer for the singer’s estate “has confirmed in writing to King’s Auctions’s counsel that the estate’s position is their opinion only, and they have no factual basis upon which to dispute the authenticity of the artwork,” adding that “there appears to be substantial hard feelings between the seller of the artwork and the estate that have existed for more than a decade.”

However, Los Angeles-based attorney Jonathan Steinsapir, who represents the estate and corresponded with King’s, told Artnet News: “I have never confirmed, in writing or otherwise, that the Estate of Michael Jackson has ‘no factual basis upon which to dispute the authenticity of the artwork.’

“Indeed, as previously explained, representatives of the estate—all of whom knew Michael—examined this artwork several years ago while it was being stored in a hangar at the Santa Monica airport, and the inspection only raised further concerns. We have made this clear to the auction house and others many times since. The estate asked for evidence that these works were in fact created by Michael, and no sufficient evidence has ever been produced.”