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A comment on SEC Sues Musk and Seeks Ban for His Tweets on Go-Private Deal. Parent comment

Re:SEC Sues Musk and Seeks Ban for His Tweets on Go-Private ... by quirkot on Thursday September 27, 2018 @04:42PM (#18088427)
In what way would that be catastrophic for the company?
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Re:SEC Sues Musk and Seeks Ban for His Tweets on Go-Private ... by deelowe on Thursday September 27, 2018 @04:44PM (#18088455)
If the stock falls below a certain price, they have to pay down debt. This is a requirement when you use stock as collateral.
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Re:SEC Sues Musk and Seeks Ban for His Tweets on Go-Private ... by dx87 on Thursday September 27, 2018 @04:49PM (#18088505)
From what I understand, and I'm sure I'm using the wrong terminology, they got loans to run the company using Tesla stock, and if the value dips below a certain amount, the loan terms say they need to be repaid with cash instead of stock.
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