Wiwynn, a server manufacturing company under the Wistron group in Taiwan, has filed a lawsuit against Company X or Twitter for defaulting on payment for server components previously ordered, amounting to 120 million dollars.
The default by X occurred after Elon Musk acquired the business in 2022 and implemented cost-cutting measures, renegotiating and delaying debt payments.
Wiwynn’s lawsuit specifies that X ordered server components totaling 120 million dollars but requested to cancel the order. Wiwynn was able to halt production at 40 million dollars, while the remaining 80 million dollars worth of components, designed specifically for X’s servers, could only be sold for 19 million dollars, as they are custom-made and not suitable for resale to others. Consequently, Wiwynn is suing X to pay the remaining 61 million dollars.
According to reports, in addition to Wiwynn, another Taiwanese server component manufacturing company named MiTAC is facing a similar issue.
Source: Tom’s Hardware
TLDR: Wiwynn sues Company X for defaulting on 120 million dollars payment for server components, after Elon Musk’s acquisition, leading to a legal battle over the remaining sum.
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