Twitter has refused to pay its Google Cloud bills as its contract comes up for renewal this month, which could result in the social media company's trust and safety teams being crippled, Platformer reported on Saturday.
Apparently the threshold in the US before courts can appoint a liquidator to take over a corporation following an involuntary bankruptcy petition is debts (with no bona fide dispute about them) totaling US$10,000 or more above the securities the creditors hold.
If there is any truth to all this discussion of Elon Musk arranging that Twitter’s debts for rent, cloud services, etc… not be paid, surely it is only a matter of time before creditors file such a petition, and he loses control of Twitter.
You may have mixed up you terminology here. Bankruptcy is something that is filed by a debtor to get protection from creditors. That is, the entity that borrowed is seeking relief from the contract that binds them to repay lenders.
Apparently the threshold in the US before courts can appoint a liquidator to take over a corporation following an involuntary bankruptcy petition is debts (with no bona fide dispute about them) totaling US$10,000 or more above the securities the creditors hold.
If there is any truth to all this discussion of Elon Musk arranging that Twitter’s debts for rent, cloud services, etc… not be paid, surely it is only a matter of time before creditors file such a petition, and he loses control of Twitter.
You may have mixed up you terminology here. Bankruptcy is something that is filed by a debtor to get protection from creditors. That is, the entity that borrowed is seeking relief from the contract that binds them to repay lenders.