A judge in Delaware has ruled to stay Twitter Inc’s lawsuits against him. Elon Muskprior to the commencement of the relevant proceedings.

The trial has been adjourned until 5:00 pm EDT on Oct. 28 to give Musk the time he needs to secure funding for the $44 billion acquisition of said social media platform.

Judge Kathleen McCormick said if a deal is not reached by her deadline, the parties will need to contact her to determine when the case will be heard in November. Musk was scheduled to appear in court on October 17, but his testimony, scheduled for yesterday, was delayed by mutual agreement.

Investors reportedly received assurances that the court’s decision would put an end to days of confusion over the takeover deal.

Twitter’s share price first fell 3.7% and then rose 2.7%.

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The world’s richest man said this week that he would buy Twitter at an agreed price of $54.20 per share in April, tying the deal to collateral loans.

The development marked a change of heart for Musk, who was embroiled in a months-long legal battle with Twitter as he tried to back out of the deal. According to him, Twitter tried to mislead him about the number of real users of the platform, among other things.

According to what Musk said in a court filing yesterday, the banks are working together to finance the deal, but he needs more time, arguing that a short delay is more convenient compared to the months it would take for a trial, as well as a possible appeal. thereafter.

During the trial, Twitter said the judge should deny the motion, and in a sign of the loss of trust between the parties involved, the company said that Musk’s plan is “an invitation to more unrest and longer delays.”

Twitter and Musk are due to complete the deal next week. The company said a corporate representative at the leading bank testified yesterday that Musk had not yet sent them the appropriate loan form, nor had he contacted them to express his intent to close the deal.

Large banks committed to financing $12.5 billion, or 28% of the deal, could face significant losses due to rising interest rates, volatility in financial markets and reduced demand for financing agreements through the provision of loans.

“There is still uncertainty about Musk’s actual ability to fund the buyout deal,” said Randy Frederick, director of derivatives trading (Schwab Cente).

This year, Musk has raised $15.4 billion by selling Tesla shares and has approached large investors for a stake in financing the buyout deal. His actions led to the possibility that he would continue to sell most of Tesla’s shares in order to adequately fund the deal to acquire Twitter.

“Funding will be completed one way or another. At this stage, it’s about negotiating terms,” said Robert Gilliland, director of Concenture Wealth Management.

Source: APE-MPE, Reuters.