Is Twitter preparing for bankruptcy?

This New York Times article seems to suggest that Twitter is insolvent and choosing not to pay all sorts of bills, many of which will expose them to genuine legal jeopardy. We've previously reported on their auctioning off of all sorts of assets, and Twitter's looming wrongful termination and discrimination lawsuits, so when the NYT stacks it all up in one article, the strategy seems to be bankruptcy.

With interest on his loans totaling over $150m/month and a company grossing $5B before screwing it all up and chasing the advertisers out, Twitter's reluctant purchaser Elon Musk seems to be running out of options.


To cut costs, Twitter has not paid rent for its San Francisco headquarters or any of its global offices for weeks, three people close to the company said. Twitter has also refused to pay a $197,725 bill for private charter flights made the week of Mr. Musk's takeover, according to a copy of a lawsuit filed in New Hampshire District Court and obtained by The New York Times.

Twitter's leaders have also discussed the consequences of denying severance payments to thousands of people who have been laid off since the takeover, two people familiar with the talks said. And Mr. Musk has threatened employees with lawsuits if they talk to the media and "act in a manner contrary to the company's interest," according to an internal email sent last Friday.

The aggressive moves signal that Mr. Musk is still slashing expenditures and is bending or breaking Twitter's previous agreements to make his mark. His reign has been characterized by chaosa series of resignations and layoffsreversals of the platform's previous suspensions and rules, and capricious decisions that have driven away advertisers.