: Elon Musk may be facing more legal pain than he expects as companies sue for unpaid Twitter bills: ‘Creditors have legal remedies, too’

by | Jan 6, 2023 | Stock Market

Elon Musk may be facing more legal woes than he expects after a landlord for one of Twitter Inc.’s offices filed a lawsuit alleging failure to pay $136,260 of rent due on office space used by the social-media company. “Not paying your debts is a short-term strategy often employed by companies in financial trouble,” said Syracuse University law-school professor Gregory Germain. “But creditors have legal remedies, too. Presumably, Mr. Musk is hoping to renegotiate the terms of Twitter’s obligations with its creditors. How that works out remains to be seen.”

The landlord, Columbia Reit-650 California LLC, filed the suit this week in relation to rent due on office space at 650 California Street, as the Wall Street Journal reported. Twitter no longer has a media department, one of many teams let go since Musk acquired Twitter in October for $44 billion. He did not respond to a tweet seeking comment on the lawsuit. The Tesla Inc.
TSLA,
-2.90%
chief executive immediately implemented massive layoffs at Twitter in an effort to cut costs upon closing the deal, and he was also hit by a wave of resignations. Musk stopped paying rent on the company’s offices and told employees not to pay vendors, according to a New York Times report in early December. See also: Want to own Twitter’s kitchen equipment or office chairs? Here’s your chance Musk revamped Twitter’s legal department, refused to pay a $197,725 bill for private charter flights made the week of his takeover — and was considering denying severance payments to thousands of people who have been …

Article Attribution | Read More at Article Source

Share This