The 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 get the KERP, or Key Employee Retention Plan, greenlit, which would distribute up to $1.9M to key employees who had been instrumental in the exchange’s operations.
Voyager’s Key Employee Retention Plan Is Challenged by Its Lenders.
Still, the trading venue’s creditors did not agree to its plan. Creditors also lodged a motion, detailing their objections to the particular proposition. They pointed out that the debtors planned to compensate their employees by distributing bonuses among them at the same time as many creditors are attempting to recoup their fundamental expenses due to the debtors’ flawed business strategy.
Creditors also claimed that Voyager did not offer sufficient explanations to warrant the retention approach. Creditors also argued that Voyager did not offer enough evidence to determine whether or not the employees in its retention strategy planned to leave.
Mark Cuban Is Being Sued By A Company Whose Products He Endorsed
Furthermore, the creditors’ filing added that the current crypto winter makes it easier for the platform to employ experts from from the pool of persons who are currently available. In light of the widespread layoffs and budget cuts recently experienced by the bitcoin industry, it has come to the attention of creditors that a large number of the newly unemployed experts are qualified to fill the vacancies created.
Mark Cuban (a millionaire) was sued earlier this month for promoting Voyager products. A law firm has filed action against the billionaire in an effort to have the issue heard by a jury. Cuban was charged in that case of using his talents to persuade investors to put their money in speculative items. Subsequently, the cryptocurrency exchange filed for bankruptcy, detailing its obligations to roughly 100,000 creditors.
