According to a court filing dated August 19, creditors of Voyager Digital have objected to the company's decision to pay employees "retention awards."

In an August 2 filing, the company requested approval of a $1.9 million "Key Employee Retention Plan" (KERP).

The bankrupt lender wanted to give bonuses to 38 employees given that they were "essential (to) accounting, cash and digital asset management, IT infrastructure, legal, as well as other critical functions," according to the bankrupt lender.

It went on to say that the 38 employees are not executive members, and the KERP is similar to what happens in other bankruptcy cases.

The company believes that losing these employees will harm its restructuring efforts, noting that they are "extremely difficult to replace in the marketplace due to their invaluable institutional knowledge and understanding of the cryptocurrency industry."

The names and positions of the key employees were not disclosed in the lawsuit. Voyager CEO Steven Ehrlich demanded that the personal information and suggested bonuses for the 38 employees be redacted in an August 12 filing, citing "non-public, personal, and/or sensitive information."

However, on August 19, the Trustee's Office objected to this request, claiming that the information is necessary for interested parties to "evaluate the Bonus Motion."

While Voyager claims that the 38 employees are not insiders, the Trustee's Office believes that some of them are. This case will be heard on August 24.

Creditors oppose Voyager's claims

The official committee of the said platform unprotected creditors also raised objections to the bankrupt crypto lender KERP's claims, arguing that the staff members were already adequately compensated.

Based on the filing, the company did not provide sufficient justification for the retention bonus or any proof that the 38 employees intend to resign.

It continued by stating that "only 12 of the Debtors' approximately 350 employees voluntarily resigned" since the company declared bankruptcy.

The creditors argued that even if the employees left, the current crypto market furloughs mean Voyager can simply replace these employees.

Aug 22, 2022
Crypto News

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