Buying Twitter again is in question. We need to solve the $13 billion loan problem

Buying Twitter again is in question. We need to solve the $13 billion loan problem

According to informed sources, negotiations between Ilon Mask and Twitter management on a $44 billion social network takeover deal have been partially stalled, as the billionaire claims that it is now dependent on a $13 billion bank loan.

In a letter sent by Mask's legal team to the US Securities and Exchange Commission, the entrepreneur was willing to make a 54.20-dollar deal on initial terms "in the amount of loan financing".

The parties continue to negotiate to resolve the remaining differences in order to complete the transaction. Upon agreement, they are expected to file an application with the court to discontinue the proceedings against Twitter following Mask ' s rejection of the transaction.

Sources reported that Mask was also trying to retain the right to sue for fraud because Twitter had misled him and other investors about the level of spam and the number of fairy accounts.

According to the April documentation, seven banks led by Morgan Stanley were required to fully cover the loan portion of the financing, and banks are unlikely to waive their obligations, even in order to avoid losses, as this would have a negative impact on their reputation and could damage their ability to enter into new transactions with investment companies in the future.

According to Bloomberg, the deal could be closed so quickly that banks would have to finance their own credit obligations, although they had originally planned to sell most of Mask's debt to the institutional cash manager before the Twitter deal was closed.