Wall Street banks are getting ready to sell $3 billion of debt tied to Elon Musk's 2022 purchase of X, formerly known as Twitter, as per a recent report by The Wall Street Journal.

Morgan Stanley, Bank of America, and Barclays lent Musk about $13 billion to help finance the $44 billion deal and are now looking to offload some of that debt to investors, states the report.

According to the report, the banks hope to sell the debt for 90 to 95 cents on the dollar. However, Musk has denied these claims, calling them "false" in a post on X and accusing the Wall Street Journal of lying, states a follow-up report by Reuters.

The banks have struggled to sell the debt since the deal closed because of X's financial troubles. Musk's changes to the platform, such as cutting staff and making controversial posts, caused many advertisers to leave, reducing revenue and making the debt less valuable, suggests the report by Reuters.

Earlier attempts to sell the debt would have forced the banks to take losses of up to 20%. Recently, though, they are feeling more optimistic about selling without big losses, partly due to Musk's political ties and the platform's influence, further suggests reports.

X still faces major financial challenges, including over $1 billion in annual interest payments. In an email sent to X staff that was later confirmed by The Verge, Musk admitted the platform is only "barely breaking even", but he remains hopeful about its future.