Voyager Digital’s creditors oppose retention bonus for employees
Bankrupt crypto-lender Voyager Digital has run into trouble again, this time drawing flak from its creditors. The Official Committee of Unsecured Creditors of Voyager Digital has filed an objection against the crypto-lender’s request for approving a retention bonus for its employees.
According to court filings, the creditors claimed that the justification that Voyager Digital has provided for its “Key Employee Retention Plan” is not sufficient.
<p lang=«en» dir=«ltr» xml:lang=«en»>The Committee vehemently opposes bonuses for Voyager employees while customers continue to suffer. The Committee’s objection to Voyager’s Key Employee Retention Plan Motion is available at https://t.co/Q1Y3DGrAcO— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) August 20, 2022
According to a motion to approve filed on 2 August, Voyager Digital was seeking $1.9 million of its funds to grant bonuses to 38 “non-insider” employees in order to keep them from exploring employment options elsewhere.
The court filing went on to describe the concerned employees as an essential part of the company, with the same working in the “accounting, cash and digital asset management, IT infrastructure, legal” departments.
Lawyers for Voyager Digital argued that recent market events have affected the value of the company’s equity, rendering the stock-based compensation for employees useless. Hence, the lender is seeking a cash retention bonus for said employees as losing them would “harm the restructuring process.”
According to 19 August’s filings, the creditors believe that Voyager employees are “already well-compensated.”
The filing also criticized Voyager’s inadequate efforts to reduce costs through way of layoffs and went on to reference big names from
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