Voyager digital to pay bonuses amounting to around $2 million to lure the employees to stay in the company who take the responsibility of operations
Voyager Digital gets clean chit from court of bankruptcy to pay bonuses
The bonus proposal was initially opposed by the creditors
US trustees’ issues with KERP
Voyager Digital’s journey in the past few months since crypto crash
Voyager digital gets clean chit from court of bankruptcy to pay bonuses
Voyager Digital, in its bankruptcy filling pleaded to court on August 2nd that, it needs to pay additional bonuses to nearly 40 employees of the company, who are the essential blocks of the operations. The proposal was labelled “Key Employee Retention Plan.” As soon as the company filed its plea at the court, it started getting a lot of backlash from the creditors. Let’s look at the creditors vows and how did they finally agree to the plea and then the court goes on to give green signal for the plan.
The opposition received to the filing made by Voyager for KERP
As soon as the lending platform filed for KERP in the court, it started getting a lot of opposition from the creditors of the company. The went on to argue that, the investors or the creditors should be prioritized before the employees of the company when it comes to payment of the funds. However, the creditors after a lot of negotiation came to accept KERP. Though they accepted the proposal, there were few conditions to be satisfied by Voayger. The main condition among the listed ones was, the implementation of operational cost-cutting measures to save $4.6 million. The KERP payments are worth 22.5% of the eligible employee’s annual salaries
After the creditors were settled, the US Trustees started objecting the claim. However the objection was resolved by the company.
The U.S. Trustees opposed to the KERP proposal, arguing that Voyager had not supplied enough information to support the proposed bonuses and that the list of personnel selected for retention pay-outs may have contained “insiders.”
But the objection was cleared by Voyager, as the legal team of the company asserted that none of the beneficiaries of the bonuses were appointed, or report to the board of directors.
When the market crashed, many cryptocurrencies related firms started drowning. One among them was Voyager. As the issue with 3AC escalated, the lending platform first halted the services of the company not allowing the users to withdraw their funds, then went on to file for bankruptcy.