The Judge in charge of Elon Musk vs. Twitter trial at the Delaware Court of Chancery, Kathaleen McCormick has put proceedings on hold until October 28th. The trial was originally scheduled to begin October 17th, but the Judge has now given the parties more time to close the deal.
“This action is stayed until 5 p.m. on October 28, 2022, to permit the parties to close on the transaction,” McCormick wrote. “If the transaction does not close by 5 p.m. on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates.”
It’s been a dramatic past few months between Twitter and Musk. The Tesla CEO filed a letter stating he would go ahead to acquire Twitter after trying to pull out of the deal. Twitter acknowledged the proposal insisting it remains committed to closing the deal. There are reservations about Musk’s sudden change of heart, and the stay was granted after Twitter’s lawyers implored McCormick not to take Musk’s word seriously, The Verge reports.
“Now, on the eve of trial, Defendants declare they intend to close after all. ‘Trust us,’ they say, ‘we mean it this time,’ and so they ask to be relieved from a reckoning on the merits,” Twitter’s lawyer Kevin Shannon wrote in a letter to McCormick. On the contrary, Musk’s lawyer Edward B. Micheletti argued, “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.”
There are growing concerns from Twitter’s lawyers if Musk will close the deal before the October 28th stay period; the billionaire has not made arrangements for more than $12 billion in financing from banks needed to make the acquisition. “Just this morning, a corporate representative for one of the lending banks testified that Mr. Musk has yet to send them a borrowing notice and has not otherwise communicated to them that he intends to close the transaction, let alone on any particular timeline,” Shannon explained.