This article comes fromDecrypt, original author: Andrew Asmakov
Odaily Translator |
Odaily Translator |
Encrypted lending platform Nexo has denied reports that talks between Nexo and Vauld on a potential acquisition have been terminated. In response, a person familiar with the matter told Decrypt that, in Nexo’s view, any future decision on Vauld should rest with the company’s committee of creditors, not its former CEO.
Rumors of a breakdown in talks between the two parties reportedly stemmed from an email sent by Vauld founder and CEO Darshan Bathija to the company's creditors. Negotiations with Nexo "unfortunately did not come to fruition," the email said.
After halting withdrawals from its platform in early June, Vauld filed for protection from creditors and lawsuits in a Singapore court, a process very similar to a Chapter 11 bankruptcy in the United States. Vauld reportedly owes its creditors a total of $402 million, including the now-bankrupt crypto exchange FTX.
Immediately after the Vauld issues came to light, Nexo announced plans to acquire Vauld, and the parties signed an exclusive due diligence agreement. According to Nexo, the exclusivity period has not yet ended.
Nexo managing partner Kalin Metodiev told Decrypt, “Nexo has not given up on saving Vauld and is still trying to help its creditors recover as much of the platform’s funds as possible.”
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Vauld creditors have concerns
Nexo also today issued an open letter and a final revised takeover proposal to Vauld’s creditors, saying that while Nexo “sincerely wants to help as soon as possible,” the company’s deal team “faces daily challenges, such as slowly receiving unsatisfactory Comprehensive financial and legal due diligence information, and encountered bias from process manager Kroll (Singapore).”
Describing the actions of the managers of the process, Nexo said Kroll "appears to be directing the resolution toward an actively managed (funds) arrangement rather than a loan arrangement, which would put prior creditors at risk and require them to rely on active Return forecasts to recover losses."
“As industry leaders, we are disappointed to see a small group of self-serving individuals trying to hijack the narrative and prevent creditors from making the best decisions,” Metodiev told Decrypt. “We hope that the bad guys have mostly left the blockchain space, but It's clear we still have work to do as a community."
Vauld's concerns reportedly include Nexo's plans to phase out the U.S. market, where Singapore-based Vauld has many clients. However, in the latest proposal, Nexo said it intends to acquire Vauld’s customer base, all cryptocurrencies owned by Vauld, all cryptocurrencies attributable to Vauld’s customers, and all liabilities arising from the acquisition of ownership of assets.
Other measures include an injection of funds from Nexo's balance sheet, effectively reducing the balance sheet deficit of all new Nexo customers by 10%, with no lock-up period for asset withdrawals.
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