Voyager creditors oppose $1.9M employee retention proposal
Voyager Digital Holdings’ committee of unsecured collectors has filed a movement to object to the agency’s proposal to maintain its staff by paying them financial awards for staying within the firm.
On August 2, Voyager Digital filed a movement to the US Chapter Court docket within the Southern District of New York to approve the Key Worker Retention Plan (KERP), which goals to distribute $1.9 million to 38 key staff whdeemed to be essential to the operations of the trade.
Nevertheless, the trade’s collectors disagreed with the proposal. In a movement filed on Friday, the collectors laid out their objections to the proposed KERP and its associated aid grants. They wrote:
“At a time when hundreds of collectors wrestle to pay primary private bills because of the Debtors’ flawed enterprise mannequin, the Debtors now search to pay bonuses to their already well-compensated staff.”
The collectors additionally argued that Voyager was unable to present sufficient motive to justify the retention plan. Moreover, the collectors stated that there was inadequate proof given to indicate that the staff who had been a part of the retention plan are planning to resign.
Aside from these, the submitting made by collectors additionally famous that the present crypto winter permits the agency to rent from a pool of expertise who at the moment are out there. “Given the latest reductions and layoffs throughout the trade, a bevy of recently-terminated professionals might fill their roles,” they wrote.
Associated: Traders lament probably misplaced ‘tens of millions’ on Voyager chapter
Earlier this month, billionaire Mark Cuban was sued for selling Voyager merchandise. A legislation agency filed a civil go well with in opposition to Cuban and demanded a jury listening to for the case. The lawsuit alleged that Cuban used his expertise to dupe buyers into placing their life financial savings in Voyager.
In July, the crypto trade filed for chapter, mentioning that the agency owes cash to greater than 100,000 collectors. In accordance with the agency, this transfer is a part of a restoration plan that goals to return worth to its clients when carried out.
