![\"Elon](\"https:\/\/i.guim.co.uk\/img\/media\/c27931075ba0d8d4b0fb31c26e532b26507ad232\/0_182_5472_3283\/master\/5472.jpg?width=460&quality=85&auto=format&fit=max&s=2ff9b848033f56f5abca7f736bf29a0e\")
<\/a><\/figure>\n\n\n\nHigher interest rates tied to efforts to bring down record inflation have led to a deterioration in the credit markets, with returns on risky junk bonds and leveraged loans surging. When the Musk-Twitter deal was financed in April, banks agreed to terms with lower yields than the market would now accept, leading to potential write-downs.<\/p>\n\n\n\n
About $400m of the $500m in losses that the banks are estimated to have on the Twitter debt are in unsecured, high interest bonds, and they exclude fees the banks would typically earn on the transaction.<\/p>\n\n\n\n
\u201cI think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,\u201d Moses Singler law firm partner Howard Fischer told the outlet.<\/p>\n\n\n\n
In a\u00a0surprise turnaround last week, Musk abandoned his three-month effort to terminate the Twitter deal through a US court in Delaware, citing the large number of fake accounts on Twitter. By some estimates, 20% of Twitter users are fake.<\/p>\n\n\n\n
The billionaire boss of Tesla and SpaceX also cancelled negotiations to shave $10bn off the agreed $44bn price tag (Twitter shares have traded as much as $20 below the $54 a share agreed in April) and said he would accept the original terms of the deal.<\/p>\n\n\n\n
Musk told the Financial Times\u00a0on Saturday that his interest in the company has never been primarily financial.<\/p>\n\n\n\n
\u201cI\u2019m not doing Twitter for the money. It\u2019s not like I\u2019m trying to buy some yacht and I can\u2019t afford it. I don\u2019t own any boats. But I think it\u2019s important that people have a maximally trusted and inclusive means of exchanging ideas and that it should be as trusted and transparent as possible.\u201d<\/p>\n\n\n\n
Twitter, however, did not immediately drop the lawsuit it is pursuing in order to force Musk into compliance.<\/p>\n\n\n\n
\u201cThere is no need for an expedited trial to order defendants to do what they are already doing,\u201d Musk\u2019s attorneys wrote in a filing. \u201cYet, Twitter will not take yes for an answer. Astonishingly they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders interests.\u201d<\/p>\n\n\n\n Twitter said the attempt to halt the litigation was \u201can invitation to further mischief and delay\u201d.<\/p>\n\n\n\n![\"Composite](\"https:\/\/i.guim.co.uk\/img\/media\/e7139346d787b910c11b6afeb114e7a5e3f83a0f\/0_144_3500_2100\/master\/3500.jpg?width=460&quality=85&auto=format&fit=max&s=e98b2b1d17ddce7cedd13df678b42323\")
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