According to an exclusive Wall Street Journal report, Wall Street banks are gearing up to offload billions in debt tied to Elon Musk’s X, formerly Twitter. This move could finally free them from a deal that’s been giving them headaches since Musk’s $44 billion takeover.

The banks are hoping to sell senior debt at 90-95 cents on the dollar, while hanging onto riskier junior holdings. They’ve already managed to sell about $1 billion in a private deal to a handful of investors.

This debt has been a major burden for the banks since they backed Musk’s buyout with around $13 billion in financing. The price tag was steep even back then, and X’s rocky performance since hasn’t helped matters. One insider called it “one of the worst” deals banks have financed since the 2008 financial crisis.

Convincing Investors of X’s Financial Stability

To sell this debt, bankers need to convince investors that X is on solid financial footing. Interestingly, Musk’s recent power plays and cozying up to President Trump seem to be changing the narrative around X’s prospects.

“Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” Musk reportedly wrote in a January email to staff, though he later denied sending such a message.

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Despite these challenges, some investors are showing interest, believing X’s finances are on an upswing.

The banks have been patiently waiting for the right moment to sell without taking huge losses.

Read more at The Wall Street Journal