Banks, led by Morgan Stanley, were keen to help Elon Musk, the richest man in the world.
when they agreed to assist in financing his purchase of Twitter Inc. in April.
At this point, neither Musk nor the banks have a clear escape route.
The acquisition will get $13 billion in debt financing from lenders that include include Bank of America Corp., Barclays Plc, and Mitsubishi UFJ Financial Group Inc.
According to calculations by Bloomberg, if the debt were to be liquidated right now, their losses would total $500 million or more.
Public records and attorneys who have looked at them reveal that.