Reuters citing 3 unnamed sources familiar.
- Some of the banks that lent Elon Musk $13 billion to buy Twitter are preparing to book losses on the loans this quarter
- Banks typically sell such loans to investors at the time of the deal. But Twitter's lenders, led by Morgan Stanley , could face billions of dollars in losses if they tried to do so now, as investors shy away from buying risky debt during a period of economic uncertainty, market participants said.
- The biggest chunk of the debt -- $10 billion worth of loans secured by Twitter's assets -- might have to be written down by as much as 20%, one of the sources said.
- Another one of the three sources with direct knowledge of the matter estimated that some banks might only take a 5% to 10% writedown on the secured portion of the loan.
