Voyager Digital gets approval to pay $1.6 million in bonuses for staff members who are essential to its restructuring plan, as reported by Cryptoslate.
After Voyager and its creditors reached an amenable agreement that included reducing the retention bonus from $1.9 million to $1.6 million, a U.S. Bankruptcy Court granted the motion on August 24.
On August 19, Voyager’s unsecured creditors filed a motion with a U.S. court asking that the “Key Employee Retention Plan” (KERP) request be denied. It asserted that giving employee bonuses a low priority compared to allocating limited resources to compensate investors, Cryptoslate noted.
In an unexpected turn of events, the creditors have given up opposing Voyager’s appeal. It was decided that the KERP budget would be set at 22.5% of the employee’s yearly wage, or $1.6 million. The bonus will be paid out in stages, with 55.6% being paid out right once and the remaining 44.4% being paid out after a year. The parties also agreed to cooperate in order to put into effect a cost-saving measure for operations by September 22. This will result in a $4.6 million profit for the company.
The United States Trustee objected to the KERP proposal in a filing on August 19 on the grounds that the listed workers might include “insiders” and that Voyager had not provided sufficient information to support the proposed bonuses. Voyager, on the other hand, claimed that none of the beneficiaries were chosen or held any managerial authority over the business.
Voyager asserted that because to their invaluable institutional knowledge and comprehension of the bitcoin business, the personnel are “exceptionally difficult to replace in the marketplace.” Since it concerned private, sensitive, and non-public information, according to Voyager CEO Steven Ehrlich, the court refrained from disclosing more information about the employees, Cryptoslate added.
(With insights from Cryptoslate)
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