Banks face US$500mil loss on Twitter debt

Problematic deal: Pedestrians outside Twitter headquarters in San Francisco, California. The banks have agreed to fund the purchase whether or not they are able to offload the debt to outside investors. — Bloomberg

NEW YORK: When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc, they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.

Lenders that also include Bank of America Corp, Barclays Plc and Mitsubishi UFJ Financial Group Inc (MUFG) committed to provide US$13bil (RM60bil) of debt financing for the deal.