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Elon Musk may be facing more legal pain than he expects as companies sue for unpaid Twitter bills: âCreditors have legal remedies, tooâ
Last Updated: Jan. 5, 2023 at 1:50 p.m. ET
First Published: Jan. 4, 2023 at 1:17 p.m. ET
By Ciara LinnaneFollow
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Musk reportedly has not paid rent on Twitter office space and told staff not to pay vendors
Elon Musk has taken an aggressive approach to cost cuts at Twitter, which he purchased in October for $44 billion. AGENCE FRANCE-PRESSE/GETTY IMAGES
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Elon Musk may be facing more legal woes than he expects after a landlord for one of Twitter Inc.âs offices filed a lawsuit alleging failure to pay $136,260 of rent due on office space used by the social-media company.
âNot paying your debts is a short-term strategy often employed by companies in financial trouble,â said Syracuse University law-school professor Gregory Germain. âBut creditors have legal remedies, too.. Presumably, Mr. Musk is hoping to renegotiate the terms of Twitterâs obligations with its creditors. How that works out remains to be seen.â
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.
Last Updated: Jan. 5, 2023 at 1:50 p.m. ET
First Published: Jan. 4, 2023 at 1:17 p.m. ET
By Ciara LinnaneFollow
comments
Musk reportedly has not paid rent on Twitter office space and told staff not to pay vendors
Elon Musk has taken an aggressive approach to cost cuts at Twitter, which he purchased in October for $44 billion. AGENCE FRANCE-PRESSE/GETTY IMAGES
Email icon
Facebook icon
Twitter icon
Linkedin icon
Flipboard icon
Print icon
Resize icon
Referenced Symbols
TSLA
-2.40%
SPX
-0.76%
Elon Musk may be facing more legal woes than he expects after a landlord for one of Twitter Inc.âs offices filed a lawsuit alleging failure to pay $136,260 of rent due on office space used by the social-media company.
âNot paying your debts is a short-term strategy often employed by companies in financial trouble,â said Syracuse University law-school professor Gregory Germain. âBut creditors have legal remedies, too.. Presumably, Mr. Musk is hoping to renegotiate the terms of Twitterâs obligations with its creditors. How that works out remains to be seen.â
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.