At least six U.S. companies are suing Twitter for non-payment of bills, reports CNBC. PlainSite is tracking a total of 14 companies worldwide that are suing Twitter for non-payment.
CNBC reached out to finance experts who told it Twitter's refusal to pay vendors is the mark of a company that's circling the drain:
Nonpayment disputes like these are not common after a leveraged buyout, according to Boston College finance professor Edith Hotchkiss. She said in an email to CNBC that they are "more typical of companies that are within a very short window of filing for bankruptcy."
Vanderbilt University finance professor Josh T. White, a former SEC economist, agreed the moves are unusual, and said litigation over nonpayment to vendors could result from "incorrect and aggressive capital structure."
Musk is hoping to turn around the company by defending Scott "Get the hell away from Black people" Adams:
