Goldman Sachs Experiences Financial Difficulties Due to Twitter’s Unpaid Rent, According to FT
According to the Financial Times, Goldman Sachs Group Inc. experienced a rise in commercial real estate loan delinquencies in the first quarter due to Elon Musk’s decision to not pay Twitter’s rent.
Twitter stopped paying its rent in November and Musk, the world’s richest man, told employees he would not restart payments or cover arrears, the FT said, citing the lawsuits. Columbia Property, which is suing Twitter for unpaid fees, defaulted on the loan in February.
The value of Goldman loans to defaulting commercial property borrowers rose 612 percent in the first quarter to $840 million, the FT said, citing filings. The newspaper said this is a 30 percent increase to more than $12 billion across the entire U.S. banking industry.
Columbia Property declined to comment to the FT, which could not be reached on Twitter.
