I don't think creditors will sell. Isn't a big chunk of the debt leveraged against his Tesla stock? Would be much easier to reclaim 90-100% of the debt against that
You sell your debt at a discount if your chance of collecting goes down, but when the debtor is one of the richest people in the world, your odds of collecting I think are decent.
Last I knew the debt is now owned by twitter, not Elon/against Tesla stock. THAT is why the debtors are pissed right now, that $13 billion is sinking hard.
Investment banks financed a portion of the deal which they could then sell to investors. They are the ones bagholding. Twitter’s debt owned by twitter makes no sense.
“Twitter’s debt owned by twitter” is indeed the wrong wording, but GP’s point is that twitter is on the hook for paying, and it is unsecured.
That being said, because the banks are having extraordinary trouble selling the debt, they may work with Elon to make it his personal liability, and secured by TSLA shares.
