Twitter CEO Elon Musk wants to lift as much as $3 billion to repay his current debt of over $13 billion. According Wall Street JournalMusk and his team spoke to investors about repayment plans. The unsecured portion of the loan package has the very best rate of interest, and Musk is reportedly trying to close the deal by the tip of this yr.
However, some potential investors have raised concerns about Twitter’s financial performance, which could hurt Musk’s plans. The banks that originally issued the debt didn’t expect such a high level of risk and took on greater than $2 billion in other commitments, including term loans and secured debt.
The WSJ reports that lenders haven’t received formal notice from Musk’s team regarding repayment plans. This uncertainty has caused great concern amongst stakeholders, especially those that have invested in the corporate’s debt, expecting to have the opportunity to sell it.
So there may be uncertainty about Twitter’s future and debt repayment plans. Musk and his team will likely proceed to work with investors to seek out a viable solution. Only time will tell in the event that they might be successful of their endeavors or if they are going to have to seek out another technique to repay their debt. Regardless, Musk could lose his job attempting to secure a deal by the tip of this yr.
