Earlier this month, beleaguered crypto firm Voyager Digital asked the US Bankruptcy court at the New York Southern District for approval on KERP. Within the filed motion, the firm sought the court’s consent on Key Employee Retention Plan. According to the plan, Voyager wants to allocate approx 1.9 million USD to their 38 employees. The firm considered them as valuable members of their workforce.
The KERP request of Voyager received a hit from inside the company itself, where the creditors filed a motion against it. Committee of unsecured creditors at the Voyager Digital Holdings showed disagreement with the proposal. In their filed motion, creditors opposed the retention plan and all the relief grants likely to fall within.
According to the motion filed on 19th August, 2022, creditors brought attention towards the struggles that thousands of creditors had to deal with. They argued that given the defective business model of debtors, creditors face problems even during paying for their basic expenses. Instead of resolving their issues, the firm wants to compensate the employees with bonuses who already received the funds.
Uncertainty Around the Employees
Further the motion also noted the company lacked reasons and was unable to give any rational reason to support their employee retention proposal. On top of that, the creditors added evidence confirming their claims that employees subjected to receive compensations according to the plan are going to resign.
Citing the possibilities of such employees to leave the firm, Voyager creditors suggested the hiring of other people. They indicated towards the recently laid off workforce in their motion, to bring them back to the company. Creditors argued that these recently terminated people were professionals and eligible to fill the roles and fulfill the demands.
Voyager Digital is among those crypto firms who had the worst hits of recent crypto winter. In July, 2022, the company went on to file for Chapter 11 bankruptcy. As per the filings, the crypto firm has credits from over 100K creditors.
Source: https://www.thecoinrepublic.com/2022/08/23/voyager-digitals-creditors-and-debtors-different-opinions-on-employee-retention/