Joe Moldovan Quoted in Insider on Potential Twitter Bankruptcy

Joe Moldovan was quoted in a December 29, 2022 Insider article entitled “Elon Musk Has Warned in the Past That Twitter Could Go Bankrupt. Here's What Would Happen If It Did.” The article discussed that with Twitter reportedly $13 billion in debt to a group of banks and owing $1 billion annually in interest payments, a Chapter 11 bankruptcy process would follow a protocol of who to repay first, with those who own equity in the company at the bottom of the chain.

Joe stated, "Equity doesn't always get wiped out, and my guess is there would be a whole variety of deals made.” In terms of the signs foretelling the likelihood of a filing or a restructuring, he continued, “One of the things you need to watch is, how are the banks marking these debts? If the banks mark down the value of loans, it means there's some possibility they're not going to get fully repaid.”

Read the article here.