Nexo Makes Final Pitch To Vauld: 'This Deal Isn't Over, Advisor Misrepresented Us'

Zinger Key Points
  • Vauld offers 6 potential candidates for a fund manager role, but Nexo says that option is not good for creditors.
  • Nexo says Kroll misrepresented previous proposal to creditors.

Cryptocurrency company Nexo has sent an open letter to Vauld's creditors, stating that the potential deal between the two companies is not yet over.

The letter, dated Monday, Dec. 26, includes Nexo's final proposal to Vauld with some amendments to its earlier proposal.

Nexo claims that corporate investigation and risk consulting firm Kroll, Vauld's financial advisor, misrepresented and manipulated the previous proposal.

Also read: Chiliz.com's ARG Token Experiences Sudden Collapse After Argentina's World Cup Success: Is It A 'Pump and Dump' Scheme?

"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 states.

According to an email from Vauld CEO Darshan Bathija, the company plans to pursue a fund management option for its restructuring following the breakdown of the potential Nexo deal.

He added that Vauld has identified six potential candidates for the role of a fund manager and is in the process of finalizing one.

But Nexo contends that the fund management option is not good for creditors.

"Vauld's Creditors, please read this carefully — while Nexo is proposing a fixed-income arrangement between Nexo and Vauld's Creditors, in which it is Nexo's responsibility to generate the loan revenue in order to pay the fixed interest it owes to the creditors, on the other hand, the creditors will assume the full risk of assigning their remaining assets to a fund manager to pursue returns and charge fund management fees in the process,” the letter stated, as reported by The Block.

"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 added.

Vauld has until Jan. 20 to address its financial issues but has applied for another extension, with a hearing scheduled for Jan. 17 next year.

Next: Trump Cards - Why The Crypto World Needs To Stand Up And Take Notice

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsTop StoriesMarketsCommittee of creditorsCredit protection extensionCreditorsCryptocurrency companyDarshan BathijaFinal proposalFixed-income arrangementFund management optionKrollLoan revenueMisrepresented proposalMoratorium extensionNexoOpen letter to creditorsUlterior motivesVauld
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!