A Delaware Judge, Kathaleen McCormick, has extended the trial over the Twitter takeover deal until 28th October. “If the transaction does not close by 5 pm on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates,” McCormick said.
Twitter Takeover Deal: Musk Gains Breathing Room
Earlier, Musk had asked to halt the upcoming Delaware court trial as he needed time to get the financing in order. In a filing with Delaware’s Court of Chancery, Musk’s lawyers said, “Twitter will not take yes for an answer. Astonishingly they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
Twitter responded by saying that Musk and his legal team are disingenuous, calling it “an invitation to further mischief and delay.” Twitter lawyers said, “Now, on the eve of trial, defendants declare they intend to close after all.” It should be noted that Musk was supposed to be scheduled for a deposition last week, but he delayed the event, citing a potential COVID-19 exposure. Moreover, he also managed to delay his rescheduled testimony, which led Twitter lawyers to complain to the judge about Musk’s “long resistance” to the meeting and concerns that he is “seeking to evade fair examination.”
Twitter Raise Concerns
In a separate filing, Twitter has raised concerns regarding the closing of the Twitter takeover deal as an unnamed source from a corporate representative for one of the lending banks has testified that Musk had not yet sent a borrowing notice and has not otherwise communicated to them that he intends to close the transaction, let alone on any particular timeline. According to the merger agreement, Musk can walk away from the deal by paying an agreed-upon $1 billion breakup fee.