Earlier quoted context omitted.
Twitter could just declare bankruptcy and restructure.
I agree this is where things are headed. Is it a sure thing that Elon maintains control in a restructuring?
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Twitter Sued for Nonpayment of Rent on San Francisco Office
161–170 of 250 posts
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#162Earlier quoted context omitted.
I don’t know why anyone would think otherwise, but a mediator will simply advise Twitter that they are required to pay the rent. There isn’t a negotiating tactic here that would actually work. A court would order them to pay and damage and costs and fees too. Short of bankruptcy Twitter or any organization is required to perform their end of contracts.
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> Musk can easily move the HQ out of California
And a commercial landlord in downtown SF can just as easily find another tenant to fill the space.
Playing hardball requires the other side to actually give a shit if you walk away from the table: Finding another tenant might be a hassle for the landlord, but certainly no more of one (and very likely much less of one) than Twitter moving the company HQ would be.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#163Earlier quoted context omitted.
>>begging people to come back I dont believe that every actually happened. The most often cited case of that was the twitter thread about badge access which was proven to be a hoax much like Ligma Johnson Devs. The Media however does not fact check anything so any negative stories are just run with no validation >>Since Elon's takeover of Twitter, it's been one PR disaster after the next. Only if you are of a certain…
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Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#164Earlier quoted context omitted.
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Unless Twitter has no assets of any marketable value (which obviously isn't the case, the company itself just sold for 44 billion dollars) the landlords will get paid, worst case by having Twitter issue additional stock in a debt for equity swap.
Many have been estimating it at well under a $10 billion valuation. Elon Musk just became the first person to lose $200 Billion.
I'd not be so quick to assume creditors are all getting paid here.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#165> Refusing to provide toilet paper or pay rent, but employees can’t work remotely. Why do people worship this clown again?
It used to be his fostering of the market for luxury EVs and reusable space rockets.
Now it's mostly for being the world's richest and most powerful troll, who despite his extremely privileged status still mostly punches down.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#166Earlier quoted context omitted.
It does, but only temporarily. Think of bankruptcy as fundamentally that the debt holders take over, and so a short time is given for everything to be sorted out. Creditors are paid by priority based on lien rights and some policy preferences encoded into the bankruptcy code. Nobody gets to jump ahead in line. That is what the automatic stay does--it provides the pause to make sure nobody gets to jump ahead in line.…
UK perspective: can the landlord not instruct bailiffs to take possession of the building? Change the locks &c. This is distinct from any debts owing except that the non-payment of rent provides the grounds for obtaining a possession order. I often see the bailiff notices on defunct companies here. There is a standard form of letter that is pasted onto the door. Quite Victorian.
In the US, not during the automatic stay that follows a bankruptcy petition. When filing for bankruptcy notices are sent out to all of the debtor's creditors notifying them of the bankruptcy filing and informing them that they must cease all collection activity against the party in question for the duration of the automatic stay.
The reason why is that the debtor ceases to be in control of their own assets. The assets (and contracts and liabilities etc) become part of a bankruptcy estate that is administered by a trustee appointed to administer the estate in an appropriate manner, such as by liquidating assets and paying creditors in an equitable fashion.
Once the automatic stay is in effect, landlords can petition the bankruptcy court for permission to retake possession of their property, and can't do much of anything until they receive it or the case is closed.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#167Earlier quoted context omitted.
The key thing here is that the loan payments are new, and are greater than profits were before the loan payments. That doesn't necessarily mean they are losing money -- revenue could have increased, or costs decreased, to make up the difference. Losing money also wouldn't mean they're insolvent -- that only happens once liabilities exceed assets. Still, it's definitely a signal that creditors will take note of. Good…
Ehhh… loans are of course an important part of the books, as is profit, but I would hold that profit/loan payments is an obscure and unhelpful metric that a competent analyst is unlikely to utilize.
Hmm, if you had net profit of X, and suddenly have a new expense of N * X, where N is greater than 2, I think that's worth taking note of, be it low payments, a lawsuit settlement, or otherwise.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#168Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#169Earlier quoted context omitted.
They will in Texas, FL, or TN which is most likely where the company will be moved to
It’s probably optimistic to assume that whatever engineers are left at Twitter will willingly relocate to Tennessee. Unless you mean that he’ll gut the company entirely and start anew in one of those states?
There are a lot of great engineers in TN who would gladly work at Twitter while getting that SFBA paycheck
Actually Twitter moving to Nashville or Memphis could be the greatest thing to happen to these cities (Memphis more than TN)...if they make it
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#170Earlier quoted context omitted.
Ehhh… loans are of course an important part of the books, as is profit, but I would hold that profit/loan payments is an obscure and unhelpful metric that a competent analyst is unlikely to utilize.
Hmm, if you had net profit of X, and suddenly have a new expense of N * X, where N is greater than 2, I think that's worth taking note of, be it low payments, a lawsuit settlement, or otherwise.
It’s really not though. This comparison is just a bad way to think about things. We have plenty of well established financial ratios that tell you something useful about an org. This is not one of them.
Interest expense hits net income. Actual debt payments do not. The ratio is out of whack if you didn’t make a profit last year or had a tiny profit.
What are we actually trying to identify here? Insolvency? Leverage? Long term Credit risk? If you tried to present this as evidence for anything you’d get kicked out the door by someone who knows what they’re doing.
Maybe they took on a ton of new debt. That is interesting! But the way you explore the salience of that fact is not by comparing the next year’s debt payment to the last year’s net income…