Voyager Digital received approval to commit $1.6 million in bonuses to employees critical to the restructuring process.
The U.S. Bankruptcy Court August 24th This included reducing the retention bonus from $1.9 million to $1.6 million after Voyager and its creditors agreed to viable terms.
Voyager Creditors indicate conditional support
Voyager’s unsecured creditors are: August 19th has filed a motion in a U.S. court to deny its request for a Key Employee Retention Plan (KERP). It argued that allocating limited funds to pay investors was more important than issuing bonuses to employees.
In a twist, creditors have settled their objections to Voyager’s appeal. It was agreed that the KERP amount would be fixed at his 22.5% of the employee’s annual salary, equivalent to a budget of $1.6 million. The bonus is paid out in stages, with 55.6% paid immediately and the remaining 44.4% after his 12 months.
The parties also agreed to work together to implement operational cost reduction measures by September 22nd. This will save the company approximately $4.6 million.
U.S. Trustee Denied
The U.S. Trustee Filed August 19, It opposed KERP’s request on the grounds that its employees may have included “insiders” and there was a lack of evidence from Voyager to justify the proposed bonus.
Voyager, however, said that none of the beneficiaries had been appointed and had no management control over the company.
The bankruptcy court dismissed the challenge and granted KERP’s motion for lack of evidence from the US trustee.
38 employees receive bonus payments
Voyager, a struggling cryptocurrency lender, has filed for bankruptcy on July 5, 2022. Since then, the company has worked with a small number of employees to solve the liquidity crisis.
August 2 filing, Voyager filed for a Key Employee Retention Plan (KERP) of up to $1.9 million. Voyager said the amount will be paid as bonuses to his 38 employees who are actively working to resolve the restructuring issue.
Voyager employees are “Their invaluable institutional knowledge and understanding of the cryptocurrency industry makes them very difficult to replace in the market.”
Details about the employees were withheld by the government. court, Voyager CEO Steven Ehrlich claimed it contained non-public personal and confidential information.
