The U.S. Trustee has opposed Celsius’ request to pay up to $2.9 million in retention bonuses to employees involved in the bankruptcy process.
Celsius Network has submitted a motion to implement a Key Employee Retention Plan (KERP) for 62 employees. The company said its employees are integral to the restructuring process and should be given incentives to keep working.
Celsius insisted the employees were not chief executives, but did not provide details regarding their identities and roles.
The US Trustee opposed this motion. Filed October 27 Because the $2.9 million bonus is illogical and unjustifiable.
According to the U.S. Trustee, a company that is out of business and owed debt is not logical. about $4.7 billion We propose millions of bonus schemes to our employees.
Further, the Trustee said Celsius was unable to provide factual information about the KERP participants. Participants claimed they could be insiders who would benefit from the bonus sharing scheme.
The U.S. Trustee added that KERP’s bonus is not tied to any discernible indicator that would allow the bankruptcy commission to ascertain its impact on the restructuring process.
As a result, the US Trustee has asked the bankruptcy court to dismiss the claims until Celsius provides sufficient information about the KERP participants.
Celsius Auctions Assets
Following the court’s ruling of October 25, Celsius is accepting bid proposals from parties interested in purchasing the remaining assets.
According to the bidding schedule, Celsius will auction the property on December 15th and deliver the sale documents to the winning bidder on December 22nd.