(Reuters) – Banks that lent $12.7 billion to Elon Musk for his $44 billion Twitter takeover will hold the debt until early next year as they wait for the billionaire to unveil a clearer
(Reuters) – Banks that lent $12.7 billion to Elon Musk for his $44 billion Twitter takeover will hold the debt until early next year as they wait for the billionaire to unveil a clearer business plan they can market to investors, the Financial Times reported.
The group of lenders, led by Morgan Stanley, Bank of America and Barclays, have conceded they will be stuck holding the debt on their books for months or even longer and will probably end up incurring huge losses on the financing package, according to the report published Tuesday, citing sources.
Morgan Stanley, Bank of America and Twitter did not immediately respond to Reuters’ request for comment, while Barclays declined to comment.
(Reporting by Lavanya Ahire in Bengaluru; Editing by Rashmi Aich)
Corporate debt refers to money that a company borrows through loans or bonds to finance its operations or projects. It is a liability that the company is obligated to repay with interest.
A business plan is a formal document that outlines a company's goals, strategies, and the means to achieve them. It serves as a roadmap for the business's future and is often used to attract investors.
Lenders are individuals or institutions that provide funds to borrowers with the expectation of being repaid, usually with interest. They can include banks, credit unions, and private investors.
Investment risk refers to the potential for losing money or not achieving the expected returns on an investment. It can arise from various factors, including market volatility and economic conditions.
A financial loss occurs when an investment or business operation results in a negative return, meaning that expenses exceed revenues or the value of assets decreases.
Explore more articles in the Top Stories category
