Wall Street Banks Prepare to Sell Billions of Dollars of X Loans

"In a January email to staff, Musk pointed to the company's growing influence and power, but said the finances remain problematic.

"Our user growth is stagnant, revenue is unimpressive, and we're barely breaking even," he said in the email, which was reviewed by The Wall Street Journal.

Archive: https://archive.ph/Iu2rI

> 90 to 95 cents on the dollar

The price at the time seemed to be thought of as too high. Elon tried to back out.

Were the banks valuing the deal differently than most?

They've waited for an occasion when a price as high as this night be possible. Meaning: Their valuation was generally lower.

Note the term “want to”. Obviously they want to. The question is, does anyone want to buy it at that.

This is also senior debt (they’re holding onto the junior debt); if when a company is bankrupted there’s a billion in assets, 900 million in senior debt, and 10 billion in junior debt, then the holders of the senior debt are paid off in full, and the holders of the junior debt get one cent on the dollar.

Well, that’s the theory; in practice what happens is that everyone goes to court, forever.