Creditors of Voyager file an objection to a $1,9 million employee retention proposal.
Voyager Digital Holdings’ Creditors’ Committee has filed a motion to contest the company’s plan to retain employees by paying them bonuses for continuing to work for the company. Voyager Digital submitted paperwork to the United States Bankruptcy Court for the Southern District of New York on August 2.
This was done in an effort to win backing for the Key Employee Retention Plan (KERP), which aims to divide up to $1.9M among the most indispensable employees responsible for driving the exchange’s operations.
Creditors of Voyager object to its key employee retention strategy.
Even so, the exchange venue’s creditors did not agree with the plan it put forward. Creditors also filed a motion in which they voiced their opposition to the respective proposal. They noted that at a time when numerous creditors are attempting to recoup their basic expenses as a result of the debtors’ inadequate business model, the debtors intend to compensate their employees through the distribution of bonuses.
Creditors also claimed that Voyager did not give them enough information to back up their claims that the retention strategy was in their best interest. In addition, the creditors asserted that the evidence supplied by Voyager was insufficient to confirm whether the employees included in its retention strategy intend to leave the company.
Mark Cuban is Being Sued for Endorsing Voyager Products.
As the creditors’ filing makes clear, the current crypto winter makes it easier for the platform to appoint experts from among the pool of candidates. In light of the recent layoffs and reductions observed throughout the cryptocurrency industry, a large number of newly-dismissed professionals could replace the previous ones and assume their positions, as noted by the creditors.
A lawsuit was filed against billionaire investor Mark Cuban earlier this month for promoting Voyager products. A law firm has sued the billionaire in an effort to have the case heard by a jury. In this lawsuit, Cuban was accused of using his talents to convince investors to invest their life savings in risky products. The crypto exchange subsequently filed for bankruptcy, disclosing that it owes money to nearly 100,000 creditors.