SUMMARY
In an email, Vauld wrote to its creditors that the deal with Nexo had not come to fruition
Nexo in its response said that talks were continuing and it still hoped to complete the purchase
Vauld founder and CEO Darshan Bathija said that the platform plans to go for the fund management option for its restructuring
Within a day of crypto lending platform Vauld calling off potential acquisition by rival Nexo, the latter has reportedly sent an open letter to Vauld’s creditors that it is not over yet.
On Monday, Vauld wrote to its creditors in an email that the deal with Nexo had not come to fruition. However, reportedly, Nexo in its response said that talks were continuing and it still hoped to complete the purchase.
The open letter said Nexo had presented a revised proposal on December 2. It also alleged that Vauld’s financial advisor misrepresented and manipulated Nexo’s previous proposal when presented to Vauld’s creditors.
“The ‘Nexo Deal Terms’ contained in the presentation delivered at the CoC [committee of creditors] meeting on October 10, 2022 were not provided by Nexo, rather they were pieced together by Kroll without Nexo’s prior knowledge,” the letter read.
“The intention of this communication was to create transparency to Vauld’s creditors, where it has been insufficient, regarding the merits of Nexo’s acquisition plan, as well as to contribute final improvements to some of the proposal’s commercial terms based on feedback from Vauld’s community,” the letter, signed by Nexo Management, said.
While informing the creditors that the deal had fallen through, Vauld founder and CEO Darshan Bathija said that the platform plans to go for the fund management option for its restructuring. It is to be noted that Vauld has time till January 20 for its restructuring.
In its open letter, Nexo claimed that the fund management option isn’t good for creditors. “We cannot help but wonder why there is such an aggressive push toward the fund management option and what kind of ulterior motives could justify taking an alternative direction to the detriment of Vauld’s Creditors,” it said.
Earlier in July, Vauld announced plans to suspend operations. In an email dated July 11,Vauld’s Bathija told investors the company had applied to a Singapore court for a moratorium to prepare for a business restructuring to safeguard the interests of all stakeholders.
At that time, the company started talks with London-based crypto lending platform Nexo. The latter said it would acquire the startup and reorganise future operations to accelerate its presence in Asia.
“I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. We have signed an indicative term sheet with Nexo, to acquire up to 100 per cent of Vauld,” Bathija said in a tweet.
