Finally, the acquisition of the Singaporean cryptocurrency lending platform Vauld could well and truly escape Nexo. Indeed, its CEO Darshan Bathija informed the company’s creditors that Nexo had failed to meet certain requirements in the context of a potential acquisition, in particular concerning its solvency.
Vauld finally dissatisfied with Nexo’s proposal?
While negotiations had been ongoing since July between Nexo and Vauld regarding the acquisition of the cryptocurrency lending platform, Vauld revealed that the latter had ” unfortunately not successful via an email sent to its creditors.
The news comes as the 2 companies had nevertheless agreed to an initial agreement 5 months ago, and that Vauld must submit his final decision to the court in less than a month.
Indeed, after suspending the withdrawal, exchange and deposit functions on its platform, the company had placed itself under protection against its creditors via a Singapore court (similar to Chapter 11 in the United States) and had been given a deadline of January 20, 2023 to present a restructuring plan.
According to the email sent by Darshan Bathija, CEO and Founder of Vauldthe company continues to explore the various buyout solutions offered by other parties:
“We have sought a mutual agreement with Nexo to end existing exclusivity agreements and we continue to actively engage with shortlisted fund managers to develop a workable strategy that would best serve the interests of creditors. »
In this same email, Vauld CEO cites lack of transparency from Nexo vis-à-vis the proceedings initiated:
“Nexo has not responded to requests for a full exercise of due diligence on them, including an assessment of their creditworthiness, in particular to assess what steps could be taken to provide creditors with a greater level of assurance. in the event of Nexo’s insolvency. »
One of the reasons could also be the recently announced departure of Nexo from the American market because of disputes with local regulators, which could jeopardize, according to Vauld, a potential reimbursement of 40% of its customers located in the United States in the event of redemption.
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According to a Nexo spokesperson, the period of exclusivity signed last July by the 2 parties has not yet come to an end, and negotiations are technically still ongoing.
Thus, Nexo sent an open letter to the various creditors of Vauld, informing them that despite the ” Nexo’s true intention to help [Vauld] as fast as possible », the people in charge of the transaction were confronted with various problemsespecially ” receiving slow and incomplete financial and legal due diligence information and facing the bias of the process administrator, Kroll “.
Darshan Bathija, the CEO of Vault, nevertheless claims that 6 potential candidates had initially been identified and that 2 of them had been shortlisted for a potential takeover. He also asserts that Vauld is currently evaluating which exit door would be most favorable for creditors in discussions with them.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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