According to Vauld’s private Twitter message, “We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan. To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition.”
Vauld has pulled out of a potential deal to allow Nexo to purchase its assets after six months of deliberations.
Nexo had earlier signed an indicative term sheet with Vauld to acquire the embattled firm after it suspended operations in July. The two firms also agreed to conduct due diligence on Nexo before finalizing the deal.
However, Nexo has since extended the due diligence deadline twice. In a recent email, Vauld claimed that Nexo has failed to respond to requests for due diligence exercises or solvency assessments.
Valud’s email also said Nexo’s recent announcement of pulling out of the US was another reason for terminating the deal. It stated over 40% of Vauld’s user base resides in the US. Thus, the existing arrangement would prevent them from receiving any benefits highlighted by Nexo’s proposal.
Furthermore, Vauld claimed that Nexo’s proposal did not offer an early exit option for Vauld's creditors, adding,
“Unfortunately, the benefits offered under the Revised Nexo Proposal, such as an early credit withdrawal, are set at a threshold which in our view is generally unachievable by the majority of creditors.”
Following the termination of a potential deal with Nexo, Vauld stated it will consider a new restructuring plan. The firm plans to appoint a third-party fund manager to oversee clients’ assets. Vauld also revealed it has shortlisted two out of six fund managers.
Meanwhile, Vauld recently received a creditor protection extension until January 20, 2023. However, Vauld has applied for another extension. The hearing for the moratorium extension is scheduled for January 17.
