Elon Musk-led Twitter has been sued by at least six companies for failing to pay bills

Elon Musk's Twitter was sued again successful California this week for alleged nonaccomplishment to wage a vendor.

The latest ailment comes from a tech startup called Writer, Inc., and it's astatine slightest the sixth institution to writer Twitter successful the United States implicit breach of declaration and non-payment since Musk took implicit astir 4 months ago.

The Tesla and SpaceX CEO led a $44 cardinal buyout of Twitter, which closed astir October 27, 2022. He sold billions of dollars worthy of his Tesla shares and took connected immoderate $13 cardinal successful indebtedness astatine Twitter arsenic helium became the sole director, caller proprietor and CEO there.

Since then, Musk's societal media task has been sued for non-payment by Writer and astatine slightest 5 others:

• Its landlord successful San Francisco, Columbia REIT
• A backstage pitchy proscription work provider, Private Jet Services Group
• An events-planning and accumulation company, Blueprint Studios Trends
• An M&A consulting firm, Innisfree M&A
• And Analysis Group, a institution that provided litigation related consulting services to Twitter and its counsel earlier Musk bought the company.

A ineligible and nationalist records database, PlainSite, is tracking these lawsuits arsenic they arise.

Twitter's alleged non-payment of rent to Columbia REIT, has led to the existent property institution defaulting connected loans for buildings, including wherever Musk leases bureau abstraction astatine 650 California Street successful San Francisco, Fortune archetypal reported.

Twitter has besides allegedly fallen down connected payments to larger companies. According to a Platformer report connected Thursday, Twitter abruptly chopped disconnected employees' entree to Slack this week aft failing to wage a bill. Slack is the workplace chat and collaboration level owned by Salesforce.

In the newest complaint, filed successful California Superior Court successful San Francisco, Writer says that Twitter failed to wage a measure for the comparatively humble magnitude of $113,856.

Previously known arsenic Qordoba, Writer describes itself arsenic an AI institution that helps employees make contented that meets their employer's standards for brand, copy, and different benignant guidelines.

Writer did not instantly respond to a petition for a remark connected the matter.

Twitter's Vice President of Product, Trust & Safety, Ella Irwin, told CNBC via e-mail, "We bash not remark connected pending litigation oregon assorted speculation surrounding Twitter's fiscal health."

Musk has publically groused astir and made airy of Twitter's fiscal woes. This week, he wrote connected Twitter, "Say what you privation astir me, but I acquired the world's largest non-profit for $44B lol."

Nonpayment disputes similar these are not communal aft a leveraged buyout, according to Boston College concern prof Edith Hotchkiss. She said successful an email to CNBC that they are "more emblematic of companies that are wrong a precise abbreviated model of filing for bankruptcy."

Vanderbilt University concern prof Josh T. White, a erstwhile SEC economist, agreed the moves are unusual, and said litigation implicit nonpayment to vendors could effect from "incorrect and assertive superior structure."

Musk's Twitter woody was financed with astir 30% indebtedness and 70% equity astatine closing.

White explained that the precocious indebtedness level is assertive for a institution with volatile and sometimes adjacent antagonistic escaped currency flow, specified arsenic Twitter had experienced successful the past 3 years.

Leveraged buyouts much often people companies with unchangeable currency flows that tin beryllium utilized to work indebtedness and make a taxation shield by deducting involvement expense, helium wrote.

"Using much indebtedness and little equity reduces the magnitude of liquid currency Musk and his equity co-investors had to lend astatine closing, which tin perchance make a higher interior complaint of instrumentality if the institution turns retired to beryllium profitable," White said.

Meanwhile, adjacent aft assertive cost-cutting measures, including widespread layoffs and cutbacks connected perks and infrastructure, Twitter is inactive astir apt struggling to make affirmative escaped currency travel to wage its obligations, White suggested. "Nonpayment, and declaration violations are surely a reddish emblem that the institution is apt financially distressed."