The Twitter-Elon Musk trial judge has agreed to postpone the proceedings until October. This is amid a dispute over Tesla CEO Elon Musk’s back-and-forth attempt to buy the social media company.
Kathaleen McCormick, Delaware Court of Chancery judge, ruled that the trial will be suspended until October 28th after Musk’s legal team requested an order to stop funding. Both parties have until Oct. 28 at 5 p.m. for a final agreement. They will be required to appear before the court in November if they fail to reach a deal.
Musk’s legal team claimed that Twitter would not accept a yes answer in a Thursday filing asking for a stay. They insist on proceeding with the litigation, recklessly putting at risk the deal and gambling with their stockholder’s interests. Twitter quickly responded by stating that Musk could and should close the deal by next week. They also argued that the court shouldn’t take Musk’s offer seriously. Musk stated that he would like to return to the original $44billion agreement to purchase Twitter at $54.20 per share.
Musk could also face funding issues. Musk’s deal depends on his ability to convince investors to finance the purchase with $13 billion of debt financing, Musk’s team stated in an Oct. 3 Securities and Exchange Commission filing. According to Reuters, at least two banks had initially offered Musk $1 billion or more in financing.
Two days after Musk had sent a letter asking Twitter for a price and agreement to keep the original deal, Twitter and Musk agreed to defer Musk’s deposition.