Since Elon Musk closed his deal to buy Twitter, he has claimed that the company, now called X, is in “a very dire situation from a revenue perspective.” Now the Wall Street Journal Reports that banks are preparing a coordinated move to sell some of the $13 billion in debt they lent to Musk to finance the deal. He mentions an email sent to employees this month, also confirmed by The peniswhere the Twit chief said, “…We have witnessed the power of we barely make an effort. “
Part of the reason Bank of America, Barclays and Morgan Stanley hold much of the debt is to try to avoid selling at a loss after economic conditions changed, and Musk has had a protracted court battle trying to withdraw from the agreement. While stock investors are said to have reduced the value of their stakes by up to 78%, the Newspaper Reports, “Banks hope to sell senior debt at 90 to 95 cents on the dollar, while retaining more junior holdings.”
While Musk referenced his email, the report said banks are hoping to use the narrative of Musk’s connection to Donald Trump because some unnamed investors may be interested in buying based on the belief that his finances are in good shape. Rising.
However, Musk also said the company could become cash flow positive “within months” of nearly two years ago, and that it still faces more than $1 billion in interest payments annual payments on loans. The platform is increasingly transforming into a testing ground for its AI ambitions, as we reported earlier this month Capable of “someone’s entire financial life” by end of 2024.
