The Association of Creditors of Voyager Digital Holdings rejects a proposal by the management of the insolvent crypto company, which provides that the company’s employees will receive bonus payments in order to continue to remain loyal to the savings platform.
The corresponding application for the rejection of the proposal was submitted by the creditors to the competent bankruptcy court of New York on August 2. The management’s Key Employee Retention Plan (KERP) aims to pay out $1.9 million to 38 key employees who are expected to be crucial to the continued existence of the company.
However, the interest group strongly opposes this project. Thus, creditors have a fundamental problem with the bonus payments provided for in the KERP:
“At a time when many creditors are having problems making everyday payments because of the debtor’s flawed business model, the debtor is now also proposing to make bonus payments to already well-paid employees.“
In addition, Voyager would not put forward really good reasons to justify the KER plan. For example, there would be a lack of clear evidence that those employees who are to be provided with the bonus payments want to leave the company.
In addition, creditors point out that in the course of the crypto winter, many other companies have already laid off employees, making a large number of other talented professionals available. “In view of the recent wave of dismissals in the industry, there is a large pool of qualified specialists who could take over these posts,” the counterargument says.