Twitter boss Elon Musk told employees at a recent all-hands meeting that the company is losing so much money that “bankruptcy is not out of the question,” according to The Information.
As Bloomberg notes, Wall Street banks that lent Musk $13 billion to fund Musk’s buyout have been quietly approaching hedge funds to see if they would be interested in chunks of buyout debt at deeply discounted prices as low as 60 cents on the dollar – which would mark one of the deepest discounts in a decade
The lukewarm investor reception shows just how big of an albatross the Twitter debt is becoming for a Morgan Stanley-led cohort that committed to finance Musk’s acquisition of the social-media firm back in April, before credit markets cratered. The seven banks are now saddled with risky loans that they never intended to keep on their books, and face an increasingly uphill battle to minimize losses. -BloombergMusk Says Twitter Bankruptcy Possible As FTC Expresses “Deep Concern” | The Most Revolutionary Act