2 years ago
Voyager Digital creditors person opposed its determination to wage employees “retention awards,” according to an August 19 tribunal filing.
Bonuses worthy $1.9M
Voyager had asked the bankruptcy tribunal to o.k. a $1.9 cardinal “Key Employee Retention Plan” (KERP) successful an August 2 filing.
The bankrupt lender wanted to wage 38 employees bonuses due to the fact that they were important to its operation, saying they are “essential (to) accounting, currency and integer plus management, IT infrastructure, legal, and different captious functions.”
It added that the 38 employees are not enforcement members and the KERP is akin to what obtains successful different bankruptcy cases.
The steadfast believes losing these employees volition wounded its restructuring efforts adding that they are “exceptionally hard to regenerate successful the marketplace due to the fact that of their invaluable organization cognition and knowing of the cryptocurrency industry.”
The suit did not uncover the names of the cardinal employees oregon their positions.
Privacy for the 38 employees
In an August 12 filing, Voyager CEO Steven Ehrlich requested that the idiosyncratic accusation and projected bonuses for the 38 employees should beryllium redacted, saying it is “non-public, idiosyncratic and/or delicate information.”
However, the U.S. Trustee’s Office objected to this petition connected August 19, arguing that the accusation is captious for funny parties to “evaluate the Bonus Motion.”
While Voyager claims that the 38 employees are non-insiders, the Trustee’s Office believes that immoderate of these employees could beryllium classified arsenic insiders.
The proceeding for this lawsuit is scheduled for August 24.
Creditors antagonistic Voyager’s claims
The authoritative committee of Voyager’s unsecured creditors besides objected to the bankrupt crypto lender KERP claims, arguing that the employees are good compensated already.
According to the filing, the institution did not springiness capable crushed to warrant the retention reward oregon immoderate grounds that the 38 employees are readying to resign.
It continued that “only 12 of the Debtors’ astir 350 employees person voluntarily resigned” since the steadfast went bankrupt.
The creditors argued that adjacent if the employees were to leave, the existent layoffs successful the crypto marketplace mean Voyager tin easy regenerate these staff.
The station Voyager creditors rejects bonus program for 38 employees appeared archetypal connected CryptoSlate.
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