That's too fast.
Glad the misery wont continue long for the employees there.
10 replies (most recent on top)
Declaring bankruptcy does not necessarily make a company insolvent. This applies to personal bankruptcy as well. Upon said declaration, the company immediately gets protection from creditors, while this goes to bankruptcy court to work a payment plan. Sometimes, many times, the company is back in business as usual after a year or two.
Wait. FTX went bankrupt. Never mind. Twitter is doomed and insolvent.
Tomorrow on "As The Bird Turns," will Elon blah blah blah?
@pwm+1jErVYFM Leave it to euros to have no idea how American systems work but insist upon injecting their ignorant opinions nonetheless
More runs like @pwm+1jErVYFM believe bankruptcy will automatically lead to Twitter becoming insolvent. That more run is picturing the sale of the furniture and mouse pads and so forth. Have no idea how things work.
lmao twitter is not going to go insolvent. the hopium from leftists/boomers in the comments is hilarious and on-brand.
@tyd.....
"None of you understand how businesses work. Declaring bankruptcy does not mean the company goes away. He will get financial protection, get on a payment plan (like a layaway plan)...."
Add yourself to the list of people who don't understand how businesses work. Bankruptcy for businesses do not work like a layaway plan. I nearly sp-t out my coffee when I read that, thanks for the laugh.
Business bankruptcy can go several ways, depending on which chapter is used.
7 liquidates the business and the company ceases to operate.
11 restructures the company and negotiates debt payments with creditors. This is a painful and complex process that limits the amount creditors can recover from the distressed business. This hurts the financial standing and credit of the business, which means the company becomes less attractive to investors. Advertisers are already skittish, which is why Musk is telling the remaining (dwindling) staff to go sell blue checkmarks like girlscout cookies or else.
13 allows the business structure to remain and gives more time for the company to pay existing debt. There are stiff requirements to meet the standard for 13, and given the level of distress Twitter appears to be under, this may not be an option.
When Musk took Twitter private at the end of October, stock owners got a payout of $54,20/share (its last day of trading closed at $53,70 and it traded as much as 25% less than that in the days before the sale) which is a HUGE and immediate expendature at a likely waay overvalued price. The business is hemorrhaging at the moment, will be interesting to see what happens given the uphill battle ahead.
Now go sell those blue checkmarks - maybe you can put some on layaway for the holidays (haha)
He needed a large loss to balance his balance sheets. He saw an opportunity to buy the bird and fly it in to the ground, to get those losses for his own gain (yes, loss is a gain in this case). He doesn't care about your career or well being or employment contracts, or employment laws, or regulatory requirements either.
He intended to ruin this company and he's succeeding in stellar fashion.
None of you understand how businesses work. Declaring bankruptcy does not mean the company goes away. He will get financial protection, get on a payment plan (like a layaway plan), and then get his finances in order.
He wants to monetize a website via subscriptions and other "tricks" (hello blue tick) when few are going to pay. Bankruptcy is inevitable - question is not what, but when.
Even if it happens, it takes some time. If Twitter goes bankrupt soon, on top of lose his money (from sales of his Tesla shares), he still needs to pay back banks on loans.
From his previous words, looks like he wants to make Twitter an omnibus for members.
Problem is that he needs lots of software talents. So, just for a while, you should see him on hiring binge. Questions are:
- Did he fire right people (talkers having neither talent nor work ethic)
- Will he hire right people -- it would be challenge as he has no good reputations of being a good boss