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Nexo Responds to rejection: Vauld CEO didn't look out for creditors

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Troubled cryptocurrency lender Vauld and its committee of creditors (COC) rejected a "final" takeover proposal from rival Nexo due to concerns about Nexo's financial health and other issues.

Original title: Nexo Responds to Takeover Rejection: Vauld CEO Fails to Think of Creditors

Originally written by Yogita Khatri, The Block

原文编译：念银思唐，Odaily 星球日报

Abstract:

- Troubled cryptocurrency lenders Vauld Turned down the competition. Nexo 's final takeover proposal.

- Vauld Still seeking. Nexo The answer, especially in terms of its solvency.

- Nexo Thursday's pair Vauld Has hit back, saying its chief executive did not have creditors' best interests in mind.

Cryptocurrency lenders in trouble. Vauld And its creditors committee (COC) turned down a rival. Nexo 's "final" takeover proposal, citing concerns. Nexo Financial condition and other issues.

"We have considered the terms of the final &Nex&NbSP proposal, and in further consultation with , we are unanimous in not accepting your proposal," Vauld Co-founder and Chief Executive Officer Darshan Bathija Writing on Wednesday. Nexo "In a letter.

Nexo In 12 Month 26 In an open letter on Sunday. Vauld The proposal was made by the creditors of On the same day the letter was sent, In a letter to Vauld The creditor's email said the potential Nexo The deal has been cancelled. But nbsp; Nexo Says it has not given up on the deal. Vauld An attempt to strike a deal.

However, Vauld It was turned down. Nexo Because it did not significantly change from the previous proposal, it continues to pursue. Nexo Answers to two of its key questions. These concerns include Nexo Recently announced plans to exit the market and how the company will handle the US. Vauld Claims by creditors, and Nexo Is the financial position sound.

"In general, we have repeatedly requested (in line with COC requirements) to conduct full due diligence, including an assessment of the solvency of Nexo or detailing what could be done in the event of Nexo bankruptcy. Vauld creditors provide a greater degree of assurance." Bathija Expressed in the letter.

Need "hard proof"

A man who asked not to be named. Vauld Creditors told. The Block, they "want hard proof of solvency so we don't get into another bankruptcy crisis."

They further stated that "there is too much uncertainty for US creditors, who account for 45 per cent of the company's assets under management, to have any protection in the event of a bankruptcy, and" They haven't provided us with their financial models to give us a reasonable estimate of vulnerability reduction."

Vauld Requirements Nexo Have until Friday to respond to its concerns. Bathija In the letter he said: "As these requests are not new to you, we hope that you will be able to show good faith in this proposal, and that the Singapore time 2023 Year 1 Month 6 Sun Friday afternoon 6 Provide satisfactory answers to our inquiries before closing of business."

"In the middle of next week, Nexo will host an on-site AMA conference to address all outstanding issues regarding our proposal, which we firmly believe is the proposal that creates the most value for our customers." Nexo Co-founder and Managing Partner Kalin Metodiev Tell The Block, "Unlike most companies in the space, Nexo confirms through third parties that our assets exceed our liabilities through real-time certification since 2021 mid-year."

Since last year. 7 Since the beginning of the month, Vauld And Nexo Has been in talks about potential deals. At that time, Vauld Suspended customer withdrawals after facing a severe liquidity crunch. Vauld Eg. Creditors are now owed. 4 More than a billion dollars.

The company must be in charge of 1 Month 20 Before sorting out its financial problems last year. 11 Another extension of credit protection was granted last month. However, Vauld Has applied for a continuance again, adjournment hearing will be held. 1 Month 17 Be held on Sunday. Whether the company will be granted another extension remains to be seen.

And for the final takeover proposal was. Vauld A refusal to do so. In response, Vauld Chief Executive Officer Darshan Bathija The best interests of creditors were not taken into account.

"Darshan Bathi; Instead of having creditors' best interests at heart, and his clique, they are now not even trying to hide the fact that they are doing everything they can to actively promote a questionable deal with an affiliated anonymous fund manager that - given how they have run the company so far - has a good chance of leading to. Any small amount of Vauld remaining on the balance sheet was wiped out by speculation and high management fees." Nexo Management said in a letter.

In view of the company's interest in potential Nexo Not interested in trading. Had been planning to seek a restructuring through a fund manager and had already identified one. 6 Home to potential candidates.

Best proposal?

"The competitor is an unknown fund manager with no track record, no track record and just unsubstantiated exaggerated promises of very high annual returns regardless of market conditions." Nexo "Because the proposal was so wonky, many assumed that those who voted for it must have been part of a secret deal in favor of the former management and a select few whale clients," the letter said.

Nexo Said it stood by its view that its earlier final offer was correct. Vauld Is best for its creditors.

"The final Nexo proposal is the best possible path forward and the only path forward -- we are not whitewashing the status quo, Darshan Bathija the administration of Vauld is devastating." "The team at Nexo has developed a plan that will create the best possible value for creditors, a plan we understand and have demonstrated we can execute," the company said.

Self 7 Since the beginning of the month, Vauld And Nexo Has been in talks about potential deals. At that time, Vauld Suspended customer withdrawals after facing a severe liquidity crunch. Vauld Exceed the debt owed to creditors. 4 A hundred million dollars.

Termination fee

And for Vauld Concerns raised by Nexo In response, they said, "Since. 2021 The company has been publishing information about its assets and liabilities in real time since 2000. The company says if Vauld To walk away from the deal and have to pay it. 2000 Ten thousand dollars.

"Nexo 's acquisition of Vauld had an exclusivity period -- In order to successfully complete the acquisition of Vauld , Nexo had to hire various advisers and invest significant time, money and effort, which made the acquisition of Nexo , Nexo&NbSP, Vauld&NbSP, and Vauld&NbSP impossible. It accumulates material costs." "While we are not willing to execute the $10,000 split clause because it would further reduce the assets available to creditors," the company said. And the destruction of his group."

Nexo, Vauld And its financial advisors Kroll There was no immediate response. The Block "For comment.