Voyager Digital gets approval to pay $1.6M bonus to 38 employees

Voyager Digital has received the support to commit  $1.6 cardinal arsenic bonuses for employees who are important to its restructuring process.

A U.S. Bankruptcy Court approved the petition on Aug 24, aft Voyager and its creditors agreed to a workable term, which included trimming the retention bonus from$1.9 cardinal to $1.6 million.

Voyager Creditors shows conditional support

The unsecured creditors of Voyager had connected Aug. 19 motioned the U.S. tribunal against approving the “Key Employee Retention Plan” (KERP) request. It claimed that allocating constricted funds to wage investors was much important than issuing bonuses to employees.

In a twist of event, the creditors person resolved their objection to Voyager’s appeal. It was agreed that the KERP magnitude volition beryllium pegged astatine 22.5% of the employee’s yearly salary, amounting to a fund of $1.6 million. The bonus volition beryllium paid incrementally, with 55.6% paid instantly and the remaining 44.4% paid 12 months later.

The parties besides agreed to enactment unneurotic to instrumentality an operational cost-cutting measurement by Sept. 22, which volition prevention the institution astir $4.6 million.

The U.S. Trustee was overruled

The United States Trustee, successful an Aug. 19 filing, objected to the KERP petition connected the grounds that the said employees whitethorn see “insiders” and a deficiency of grounds from Voyager to warrant the projected bonuses.

Voyager, however, stated that nary of the beneficiaries were appointed nor had immoderate managerial power of the company.

The Bankruptcy Court, for a deficiency of grounds from the U.S. Trustee, overruled its objection and granted the KERP motion.

38 employees to person the bonus payment

The struggling crypto lender, Voyager filed for bankruptcy connected July 5, 2022. Since then, the institution has been moving with a fistful of employees to resoluteness the liquidity crisis.

In an Aug 2 filing, Voyager applied for a “Key Employee Retention Plan” (KERP) of up to $1.9 million. Voyager said the magnitude volition beryllium paid arsenic bonuses to 38 employees actively moving to resoluteness its restructuring issues.

Voyager claimed that the employees are  “exceptionally hard to regenerate successful the marketplace due to the fact that of their invaluable organization cognition and knowing of the cryptocurrency industry.”

Further details astir the employees were withheld by the court, arsenic Voyager CEO Steven Ehrlich claimed that it progressive non-public, personal, and delicate information.

The station Voyager Digital gets support to wage $1.6M bonus to 38 employees appeared archetypal connected CryptoSlate.