Voyager Digital Lenders Oppose Bonuses to Key Employees

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A group of creditors of Voyager Digital, in response to the company's statement about the need to pay remuneration to key employees, said that it did not see the need for this.

Voyager Digital undergoing the procedurebankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, asked a federal judge to approve $1.9 million of its Key Employee Retention Plan (KERP) funds. The company wants to pay bonuses to 38 employees who are vital to its continued operation and restructuring. 

In a statement to the court, Voyager Digital claims,that employees must be retained under all circumstances as they perform “core accounting, cash and digital asset management, IT infrastructure, legal and other critical functions,” Voyager said in a statement.

“The KERP program allows you to keepcertain critical non-insider employees and is consistent with retention programs in similar Chapter 11 cases. KERP provides for the payment of cash awards to 38 non-insider employees,” the statement said.

However, the Official Committee of Unsecuredbroker Voyager Digital does not believe that the company needs to pay remuneration to employees, without whom restructuring and further activities of the company are impossible. Voyager employees were "already well compensated," they said, and the company had otherwise done little to cut costs.

“The debtors did not present anyevidence that 38 members are planning to leave the company, other than statements that these employees are essential. And this is because such evidence does not exist. As of the date of filing of the petition, only 12 of the debtor's approximately 350 employees had resigned voluntarily,” the Committee said in a statement.

Let us recall that at the beginning of the month, Voyager Digital announced the preparation of a plan for restructuring and the resumption of cash withdrawals from the platform.