Nexo Says Crypto Lender Vauld Takeover Still Happening As Deadline Approaches: Report

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Nexo reportedly still intends to strike a suitable deal in negotiations to take over crypto lender Vauld.

Talks between Nexo and Vauld are currently at an impasse, as Vauld’s Jan. 20 deadline to present a restructuring plan to creditors approaches, according to a Bloomberg report.

Nexo entered into negotiations with Vauld in July 2022 amid a difficult year for many crypto lenders.

Bloomberg cites Nexo as writing,

“We remain committed to providing creditors with the most favorable recovery route.

Nexo is committed to continuing to work for the benefit of creditors and supporting the development of the blockchain ecosystem.

According to a Blockworks report, Nexo gives a list of reasons why the deal has not yet closed, including:

Receiving slow and incomprehensible financial and legal due diligence information. Outstanding issues with the potential agreement administrator. Nexo said the entity “appears to be tilting the solution towards an active management agreement rather than a loan agreement, which would put former creditors at risk and force them to rely on aggressive return projections to recover. their losses. Supposed measures to keep Nexto out of communication with purchase stakeholders Nexo said a “formal presentation” to the administrator took place in mid-October, despite lenders’ requests to Vauld to facilitate an introduction anterior. Alleged misrepresentations of Nexos terms allegedly broadcast by Vauld to its creditors’ committee.

While the challenges to reaching a compromise appear substantial, Nexo refrained from calling off negotiations in a letter Monday to Vauld’s creditors.

Earlier this month, Nexo announced that it was leaving the United States altogether to avoid regulatory lack of clarity.

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Featured Image: Shutterstock/AGGIO/Satheesh Sankaran

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