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So if it goes bankrupt what happens ? None of his assets aside Twitter gets seized ?
by ilyt 4y ago
So if it goes bankrupt what happens ? None of his assets aside Twitter gets seized ?
- plorkyeran 4y agoIf Twitter fails to make payments on its debt then Morgan Stanley will become the proud new owner of Twitter. It is similar in structure to a mortgage on a house.
- midoridensha 4y agoThat seems like a really stupid loan to make then. If Twitter fails, it becomes mostly worthless, much like MySpace today. Why would a bank make such a loan? (It does seem like bankers are pretty stupid these days though, or just don't care because it's not their money.)
- robryan 4y agoThey set an interest rate in line with the risk that they are taking on. It seems like a pretty unlikely scenario where Twitter is worth nothing, if it goes bankrupt there can probably be a fairly sizable sale to recoup some value. Allowing so long for the deal to close may have been a mistake due to what happened in the market between when they agreed to terms and when the deal closed.
- KptMarchewa 4y agoHe already paid 20B+ of his own money. Debt is only part of financing, AFAIK ~13B.