Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
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Rules:
1: All Lemmy rules apply
2: Do not post low effort posts
3: NEVER post naziped*gore stuff
4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.
5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)
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7: crypto related posts, unless essential, are disallowed
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How cheap does X have to get before it can be bought by a non-profit, turned into a co-op and renamed twitter?
It's no longer a public company. So it can be bought when Musk chooses to sell. Or if he defaults on his loan then it may go to banks but they really don't want it and have already written off their loan to him.
Why exactly do normal people with small defaults have 'collection agents' sent after them, while billion dollar defaults are written off? Isn't that supposed to be the other way around?
It's all to do with the terms of the contract and collateral.
Bonds are guaranteed by the collateral of the ownership of the company. If the company defaults on their loan, then ownership transfers to the bond holders, so the bond holders now own all the equity in the company (and previous equity holders get nothing.)
There are no collections agents for companies because once they default, all of that is essentially triggered automatically contractually. There's a bit of wiggle room with negotiating changing terms on the loans and such before a default happens, but that's the broad strokes.