Elon Musk has warned in the past that Twitter could go bankrupt. Here's what would happen if it did.
The company also has some $13 billion in debt from banks like Morgan Stanley, which are, Reuters reported this month. That can create pressure on lenders to work with Musk to reorganize the debt, whether in court, or privately, experts said.
Musk's leveraged purchase of Twitter with such vast borrowed funds comes with its own price tag — more than $1 billion in interest payments each year thatCompanies dealing with large amounts of secured debt — often backed by assets like its cash on hand, or property, or inventory — sometimes use Chapter 11 bankruptcy as a way to restructure so that they can stay in business.
Some creditors are more hands-on. Banks can wind up offloading their debt to investors like hedge funds and private equity firms, which assert more control, especially in decisions around the bankrupt company's management and direction, said Gotberg, the BYU law professor. A court-supervised bankruptcy follows a common framework of repaying a bankruptcy company's creditors — it prioritizes those who hold secured debt to get repaid first, and relegates those who own equity in the company to the bottom. That means that secured lenders like banks get top dibs on recoveries, while equity holders, including Musk, could lose the value of their equity, unless they work out ways to preserve it, attorneys said.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Tweeting again: Teenager restored to Twitter after ban for tracking Elon Musk flightsA teenager banned from Twitter because he tracked Elon Musk's flights has been restored to the site because he is now delaying the details by a day.
続きを読む »
Twitter restores suicide prevention feature after Elon Musk reportedly ordered its removalTwitter has restored its suicide prevention feature after it was reportedly removed under orders from new owner Elon Musk.
続きを読む »
Elon Musk claims Twitter staff had 'Fauci Fan Club' Slack channelElon Musk claimed Twitter employees had a Slack channel called 'Fauci Fan Club' in reference to the White House's chief medical advisor
続きを読む »
Elon Musk laughed when asked about Twitter layoffs on podcastElon Musk laughed when asked about Twitter layoffs and said a focus on working hard 'was not Twitter's prior culture' before he took over
続きを読む »
Elon Musk claims ex-Twitter employees ran ‘Fauci Fan Club’ Slack channelMusk on Tuesday responded to a tweet thread by venture capitalist Marc Andreessen, who posted a meme that accused Fauci of lying.
続きを読む »
Elon Musk admits to making mistakes in first weeks as Twitter CEOInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
続きを読む »