Voyager Digital creditors have opposed its transfer to pay employees “retention awards,” in keeping with an August 19 courtroom filing.
Bonuses price $1.9M
Voyager had requested the chapter courtroom to approve a $1.9 million “Key Employee Retention Plan” (KERP) in an August 2 filing.
The bankrupt lender needed to pay 38 employees bonuses as a result of they have been essential to its operation, saying they’re “essential (to) accounting, cash and digital asset management, IT infrastructure, legal, and other critical functions.”
It added that the 38 employees should not govt members and the KERP is just like what obtains in different chapter instances.
The agency believes shedding these employees will damage its restructuring efforts including that they’re “exceptionally hard to replace in the marketplace because of their invaluable institutional knowledge and understanding of the cryptocurrency industry.”
The lawsuit didn’t reveal the names of the important thing employees or their positions.
Privacy for the 38 employees
In an August 12 filing, Voyager CEO Steven Ehrlich requested that the private info and proposed bonuses for the 38 employees must be redacted, saying it’s “non-public, personal and/or sensitive information.”
However, the U.S. Trustee’s Office objected to this request on August 19, arguing that the data is important for events to “evaluate the Bonus Motion.”
While Voyager claims that the 38 employees are non-insiders, the Trustee’s Office believes that a few of these employees might be categorised as insiders.
The listening to for this case is scheduled for August 24.
Creditors counter Voyager’s claims
The official committee of Voyager’s unsecured creditors additionally objected to the bankrupt crypto lender KERP claims, arguing that the employees are nicely compensated already.
According to the submitting, the corporate didn’t give enough cause to justify the retention reward or any proof that the 38 employees are planning to resign.
It continued that “only 12 of the Debtors’ approximately 350 employees have voluntarily resigned” for the reason that agency went bankrupt.
The creditors argued that even when the employees have been to go away, the present layoffs within the crypto market imply Voyager can simply exchange these workers.