Sorry, even more convinced that destroying Twitter was Elon’s goal all along
@AgincourtDB He tried to back out of the agreement to buy it, but forcing the company into bankruptcy might be the next best thing - he walks away and whoever lent him the money is holding the bag
@mcfate @AgincourtDB Good point! But it depends on how things are structured as to what they could get and what is protected
What do you mean "protected"? This is his own PERSONAL STUFF. There's no board of directors, just ELMO.
You can't tell creditors, "Oh, I'm flat broke, just ignore those multiple companies I own outright."
@mcfate @AgincourtDB Myn mistake! Thought Tesla was public and that creditors would maybe be limited to his personal shares. I also thought the agreements between Musk and the financers of the Twitter purchase might add some complications. Not an expert though so I'll back out of this convo!
Tesla is public. His HOLDINGS in Tesla aren't, at least whatever's not already encumbered as collateral for some OTHER loan. SpaceX is not public.
Certainly, Elmo has to have taken PERSONAL responsibility for the $13 billion he borrowed from the banks.
Twitter has no assets that could possibly collateralize a loan like that.
@mcfate @AgincourtDB I’ve heard of some acquisitions that structure the debt so that it’s the purchased company that is the debtor, not the shareholders. You’d need to find good reason to pierce the corporate veil to go after the shareholders. I have no idea how things were structured here, though, so I shouldn’t speculate. Sounds like you know more about how he borrowed the money than I do. Go ahead and ignore my earlier comments
There's no "corporate veil". He bought it FOR HIMSELF. There are NO SHAREHOLDERS, there is ONLY ELMO.
@mcfate @AgincourtDB OK, sorry for intruding
No intrusion, just attempting to set things straight to the best of my understanding.
@jaybee165 @AgincourtDB
Not quite. He's got assets. SpaceX. Tesla.