Elon Musk totally screwed his bankers who foolishly funded his Twitter LBO. Big mistake. I show how Banks can take over control from Elon, Twitter goes into recovery, & banks begin to recoup losses.
Question: If we make the not unreasonable assumption that the Twitter LBO debt is worthless, is there any incentive for the banks to recognize this now rather than kicking the can down the road? I guess (?) the banks don't act until the interest payments dry up. Banks being banks, I imagine the Twitter paper is recognized on the books at full value despite it being deeply impaired.
Question: If we make the not unreasonable assumption that the Twitter LBO debt is worthless, is there any incentive for the banks to recognize this now rather than kicking the can down the road? I guess (?) the banks don't act until the interest payments dry up. Banks being banks, I imagine the Twitter paper is recognized on the books at full value despite it being deeply impaired.