(Reuters) – Banks that lent $12.7 billion to Elon Musk for his $44 billion Twitter takeover will hold the debt until early next year as they wait for the billionaire to unveil a clearer business plan they can market to investors, the Financial Times reported.
The group of lenders, led by Morgan Stanley, Bank of America and Barclays, have conceded they will be stuck holding the debt on their books for months or even longer and will probably end up incurring huge losses on the financing package, according to the report published Tuesday, citing sources.
Morgan Stanley, Bank of America and Twitter did not immediately respond to Reuters’ request for comment, while Barclays declined to comment.
(Reporting by Lavanya Ahire in Bengaluru; Editing by Rashmi Aich)