Musk asked the social media company to end all litigation in order to close the deal, three days after he said he wanted to buy the company again.
In a filing with Delaware's Court of Chancery on Thursday, Musk's side said that the court date in October should be dropped so that the necessary financing can be found.
The filing says thatTwitter will not accept an answer. They have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders' interests.
According to Musk's attorneys, the upcoming court trial would ruin the deal because they didn't agree to set aside the litigation.
The parties will remain distracted by completing discovery and an unnecessary trial instead of focusing on securing the debt financing needed to complete the transaction and prepare for a transition of the business, according to the attorneys.
The world's richest person was sued by the social media company to try and force him to stick to his agreement. As Musk's text messages were made public, he appeared ready to go to court.
At the company's recommendation, shareholders agreed to Musk's purchase price in September, but they may now be hesitant to walk away from the lawsuit because they don't know if all the financing is available.
According to Musk's attorneys, the most likely scenario is that the debt will be funded in time for the deal to close. According to the lawyers, the debt financing parties have advised that each of their clients is prepared to honor its obligations under the Bank Debt Commitment Letter on the terms and subject to satisfaction of the conditions.
Morgan Stanley and Bank of America were part of the original group of banks that agreed to lend money to Musk. The markets have tanked since then.
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