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How is a sell down letter not prosecutable as price fixing cartel behaviour?
by dools 3y ago
How is a sell down letter not prosecutable as price fixing cartel behaviour?
- dragonwriter 3y agoBecause it doesn’t fix the price, in any way. The only thing it does is reduce the risk of any of the banks being manipulated in a divide & conquer effort by a buyer with effective monoposony power because they have information not generally available to other buyers or even the banks themselves. Which is exactly the scenario that it posited that would be present with Musk right now that it is potentially mitigating.
- Zigurd 3y agoBecause a coordinated action by creditors is not only not illegal, it can be required. How else would they force Twitter to be restructured if Twitter defaults or otherwise breaks loan covenants?