Update at 7:30 pm ET: Delaware Court of Chancery Judge Kathaleen McCormick granted Elon Musk’s request for a keep in an order that provides the events three weeks to barter and shut the merger. The trial will not start on October 17 as scheduled and can be canceled completely if the merger closes by the top of this month. If deal talks crumble, a trial can be scheduled for November.

“This motion is stayed till 5 p.m. on October 28, 2022, to allow the events to shut on the transaction. If the transaction doesn’t shut by 5 p.m. on October 28, 2022, the events are instructed to contact me by electronic mail that night to acquire November 2022 trial dates,” McCormick wrote.

Musk’s movement for a keep stated the merger is on observe to shut by October 28. Twitter didn’t need the litigation stayed. “Plaintiff Twitter opposes the movement on the premise that Defendants’ settlement is not going to make sure that the transaction closes quick sufficient,” McCormick wrote.

Original story: Elon Musk right this moment slammed Twitter for not instantly dropping its lawsuit in opposition to him and requested the decide to remain the case as a result of “Twitter is not going to take sure for a solution.”

With Musk having informed Twitter this week he’s as soon as once more prepared to honor their authentic deal, the corporate is unsurprisingly looking for assurances that Musk will not break the merger contract once more earlier than agreeing to pause litigation. Musk—who beforehand tried to delay the trial till 2023—accused Twitter of not performing quick sufficient in a court docket submitting his legal professionals submitted right this moment:

Twitter is not going to take sure for a solution. Astonishingly, they’ve insisted on continuing with this litigation, recklessly placing the deal in danger and playing with their stockholders’ pursuits. Proceeding towards trial is just not solely an infinite waste of occasion and judicial assets, it’ll undermine the flexibility of the events to shut the transaction.

The submitting asks Delaware Court of Chancery Judge Kathaleen McCormick “to remain this motion and take away the October 17 trial from the Court’s calendar based mostly on modified circumstances which have successfully mooted this motion.” Musk’s submitting additionally stated the merger is on observe to shut on or round October 28.

While a keep would not shut the court docket case, Twitter doubtless does not need to cancel the scheduled trial date till it is extra sure the merger will probably be accomplished.

Musk scoffs at debt financing considerations

Debt financing is reportedly a sticking level in negotiations. Musk’s letter to Twitter earlier this week stated his provide to honor the unique deal is pending receipt of debt financing.

Musk has dedicated as much as $33.5 billion himself. His submitting stated there will not be any issues finishing financing for the remainder of the $44 billion buy worth:

Quite on the contrary, counsel for the debt financing events has suggested that every of their purchasers is ready to honor its obligations below the Bank Debt Commitment Letter on the phrases and topic to satisfaction of the situations set forth therein. We have so suggested Twitter, once more to no avail. Not solely has Twitter’s baseless hypothesis been refuted by the banks themselves, any theoretical claims Twitter might concoct based mostly on a possible financing failure that has not occurred are unripe and unpled, making them properly exterior the scope of the trial set to start in eleven days.

Musk additional claimed that persevering with litigation “would ship a sign to the market that—regardless of Defendants’ dedication to carry out their obligations below the Merger Agreement and Equity Commitment Letter—Twitter is demanding that the Court impede the deal shifting ahead. Instead of permitting the events to show their focus to securing the Debt Financing essential to consummate the transaction and getting ready for a transition of the enterprise, the events will as a substitute stay distracted by finishing discovery and an pointless trial. In impact, a trial would hold the merger transaction in limbo for longer, casting an pointless cloud of uncertainty over the corporate.”

With an October 28 closing, “Shareholders would obtain their funds far sooner than would be potential if Twitter had been to proceed to trial and win, win once more on attraction, and solely then first proceed towards funding and shutting,” Musk’s submitting stated.

Musk’s spam claims went nowhere

Musk agreed to purchase Twitter in April however later tried to get out of the deal by claiming the corporate lied concerning the variety of bots and spam accounts on the platform. Twitter sued Musk to drive him to finish the acquisition.

While Musk now accuses Twitter of “casting an pointless cloud of uncertainty over the corporate,” Twitter’s lawsuit in opposition to him stated the corporate faces issues attributable to Musk’s public criticism and his makes an attempt to interrupt the merger settlement.

“Defendants’ actions in derogation of the deal’s consummation, and Musk’s repeated disparagement of Twitter and its personnel, create uncertainty and delay that hurt Twitter and its stockholders and deprive them of their bargained-for rights. They additionally expose Twitter to antagonistic results on its enterprise operations, workers, and inventory worth,” Twitter’s lawsuit stated.

During the invention course of, Musk apparently wasn’t in a position to receive any substantial proof to again up his spam claims, making it unlikely that he might win at trial.