As a former restructuring and bankruptcy advisor at Lazard, I can recognize the signs of a company in distress. And it’s a pretty obvious tell that there’s financial trouble brewing when a company stops paying its bills.
Your assumption is personal or personally guaranteed debt, but the loan was likely (based on my reading the term sheets leaked) to the new entity that was going to purchase/merge with the pre-existing Twitter. That potential negative net worth wouldn’t be tied to Musk but the entity we now know as Twitter. Musk would not be in financial distress.
Edit: I may have misread what you wrote. The value of Tesla, Twitter, and SpaceX could go negative and Musk would still be wealthier than 99.99% of the world because personal guarantees are unlikely to be attached to that debt.
Your assumption is personal or personally guaranteed debt, but the loan was likely (based on my reading the term sheets leaked) to the new entity that was going to purchase/merge with the pre-existing Twitter. That potential negative net worth wouldn’t be tied to Musk but the entity we now know as Twitter. Musk would not be in financial distress.
Edit: I may have misread what you wrote. The value of Tesla, Twitter, and SpaceX could go negative and Musk would still be wealthier than 99.99% of the world because personal guarantees are unlikely to be attached to that debt.
My understanding is Musk is personally on the hook for a good chunk of his Twitter loans.
If that’s the case he’s even more arrogant and less intelligent than I thought.
Pretty sure he is less intelligent than most of us thought 🤔