Elon Musk has an unbeatable opportunity. The judge overseeing Twitter’s lawsuit against the businessman, Kathaleen McCormick, suspended the trial that was scheduled to start on October 17, with the aim of both parties reaching an agreement, after Musk agreed to buy the social network for 44,000 million dollars.
This does not mean that the trial has been erased, since if the acquisition is not completed, the trial would obtain a new date to be carried out, which would be established on October 28.
“If the transaction does not close by 5:00 p.m. on October 28, 2022, the parties are directed to contact me by email that evening for November 2022 trial dates,” the judge wrote.
Twitter’s position in this regard is one of disbelief, as they asked Judge McCormick not to take Musk’s words seriously and keep the process on the dates already established.
“Now, on the eve of trial, the defendants declare that they intend to close the deal after all. ‘Trust us,’ they say, ‘we mean it this time,’ so they ask to be relieved of a reckoning,” Twitter attorney Kevin Shannon wrote in a letter to McCormick.
On the other hand, Musk’s side said this is the best decision, as the trial distracts his team from securing the financing needed to close the deal. “Twitter will not take yes for an answer. Shockingly, they have insisted on continuing this litigation, recklessly risking the settlement and playing into the interests of their shareholders,” their attorneys wrote.
Twitter doesn’t think Musk will get the money for the purchase
This is a sensitive topic for Twitter. His lawyers have expressed doubts that Musk can really close the deal, since he has not finalized his plans with some banks that are supposedly going to provide him with money for the purchase.
Morgan Stanley and Bank Of America are the two institutions that have agreed to provide $12.5 billion in debt for Musk; however, since the first purchase offer in April, the markets have collapsed, especially in the case of risky technology assets.
“Just this morning, a corporate representative from one of the lending banks testified that Mr. Musk has not yet sent them a loan notice and has not otherwise communicated to them that he intends to close the transaction, much less in a time. particular timeline,” Shannon wrote.
However, the billionaire’s team said that “the debt financing parties have advised that each of their clients is prepared to meet their obligations under the Bank Debt Commitment Letter.”
Without a doubt, this is an opportunity for Musk, since the judge has already expressed concern about the lack of elimination of communications between Musk and other businessmen through Signal regarding the purchase of Twitter, which could be very important for the case.
