Voyager Digital Lenders Oppose Bonuses to Key Employees

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

Voyager Digital, which is filing for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, has 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 for its future work and restructuring.

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

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

However, the Official Committee of Unsecured Creditors of the Voyager Digital broker does not consider that the company needs to pay remuneration to employees, without which the restructuring and further activities of the company are impossible. Voyager employees have “already been well compensated,” they said, and otherwise the company has done little to cut costs.

“Debtors have not provided any evidence that the 38 members are going to leave the company, other than stating that these employees are needed. And that’s because no such evidence exists. As of the filing date of the petition, only 12 of the approximately 350 employees of the debtor have resigned of their own accord,” the Committee said in a statement.

Recall that at the beginning of the month, Voyager Digital announced the preparation of a plan for restructuring and resuming the withdrawal of cash from the platform.