Nexo is reportedly still planning on finding a suitable agreement in negotiations to take over crypto lender Vauld.
According to a report from Bloomberg, talks between Nexo and Vauld are currently at an impasse as Vauld’s January 20 deadline to present a restructuring plan to creditors approaches.
Nexo began negotiations with Vauld in July 2022 amid a rough year for many crypto lenders.
Bloomberg quotes Nexo as writing,
“We remain dedicated to offering the creditors the most favorable recovery path forward.
Nexo is determined to continue working for the benefit of the creditors and to support the development of the blockchain ecosystem.”
According to a from Blockworks, Nexo is giving a list of reasons why the deal hasn’t gone through yet, including:
- “Receiving slow and incomprehensive financial and legal due diligence information.
- Outstanding issues with the administrator of the potential deal. Nexo said the entity has ‘seemed to be directing the solution towards an active management arrangement rather than a lending arrangement, which would expose the former creditors to risk and require them to rely on aggressive return projections to recover their losses.’
- Purported steps to keep Nexto out of communication with stakeholders in the purchase Nexo said a ‘formal introduction’ to the administrator occurred in mid-October, despite the lender’s requests for Vauld to facilitate an earlier introduction.
- Alleged misrepresentation of Nexo’s terms said to be disseminated by Vauld to its creditor committee.”
While the challenges to reaching a compromise seem substantial, Nexo has stopped short of calling off negotiations in a letter sent to Vauld creditors on Monday.
Earlier this month, Nexo announced it was leaving the United States completely in order to avoid lack of regulatory clarity.
