Todd Henderson Writes About Remedies for Twitter’s Creditors

Ch. 11 Isn't Twitter Creditors' Only Hope Of Getting Paid

On Nov.10, new Twitter Inc. owner Elon Musk reportedly told employees that bankruptcy was a possibility unless Twitter's cash flow improved. But that cash flow already has been reduced considerably because advertisers are pulling away from Twitter.

Advertisers — by far Twitter's most important revenue source — are reportedly concerned about just what Musk wants to do with the company. There's a meaningful risk, based on activity since Musk took control, that Twitter will become hate speech central and a place advertisers will likely shun.

Musk's pleas to advertisers to stick with the platform will likely fail if he opens Twitter to further to behavior with which high-dollar advertisers are uninterested in associating.

Read more at Law360