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Twitter Buyout Loans Get Bid at 60 Cents as Banks Sound Out Investors
- shagie 4y agohttps://archive.ph/UD0gj https://archive.ph/UD0gj
- smt88 4y agoAt this point I honestly don't know how they can avoid bankruptcy. Twitter was never a thriving business, but its main revenue stream has been hobbled by Musk's mismanagement. I'm also not sure who would want to buy a bankrupt Twitter when debt is so expensive.
- ksherlock 4y agoIn chapter 11 bankruptcy, the existing debts are wiped out (or renegotiated down). But the debt owners (in this case, wall street banks) have to agree to it, of course. Which might mean transferring debt to equity (and Monsieur Musk becomes a minority shareholder), staff the executive suite with sales guys, and an IPO in a year or two when the financials look better. Wall street banks love IPOs! Another option, for those who remember history (cough, Solar City, cough), is a Tesla bail out.
- shagie 4y ago> ... and an IPO in a year or two when the financials look better. That's assuming that the company isn't completely ruined by then. My (not a finance guy) read on this is "the banks aren't sure that it ever will get better" ... which, doesn't seem wrong, and if right means that $0.60 on the dollar is better than $0.00 on the dollar. Unless it was sold to an interested foreign investor... but that's something that is getting sketchier and more concerning.
- Ekaros 4y agoThis whole ordeal starts to sound better and better. Musk losing 30 billion and Twitter then outright dying...
- p1esk 4y agoYeah if I were at Twitter right now I’d spend most of my time practicing leetcode problems.