Elon Musk's strategy of cutting expenses at Twitter by not paying bills is coming home to roost. The company's landlords at its iconic Market Square HQ in San Francisco have sued for two months of back rent – and more.[PDF] that Twitter not only owes $6.8 million in unpaid December and January rent, but that it also failed to abide by the terms of its lease, which required an additional $10 million deposit into its letter of credit if control of the lease changed.
The suit outlines a number of attempts to get Twitter to pay its headquarters rent after being rebuffed on requests for the LOC increase, each of which ended in Twitter"not, within the time specified in the notice of default or at any other point thereafter, pay[ing] the monthly rent and additional rent due," the suit alleges.