“Musk doesn’t want to own Twitter, the banks don’t want to fund it. We’re in this weird ‘Alice in Wonderland’ situation trying to force this guy to buy a company he doesn’t want to buy,” said M. Todd Henderson, a professor at the University of Chicago Law School. “Would you want to fund a guy to own a company that he doesn’t want to own?”
…In that case, Musk would have to pay the cash part of the deal to Twitter’s investors, and then Twitter itself (now owned by him) would take on the debt itself to finish paying the old shareholders, according to Henderson.
Musk could also go to court to force the banks to honor their agreement and loan him the money. If he didn’t want to do that, the court could even appoint a special representative to act in his stead and sue the banks, Henderson said.
M. Todd Henderson on Elon Musk’s Twitter Deal
Washington Post – ICLE Academic Affiliate M. Todd Henderson was quoted by The Washington Post in a story about Elon Musk’s attempt to renege on his deal to buy Twitter. You can read full story here.