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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 undergoing bankruptcy proceedings in the U.S. bankruptcy court of the Southern District of New York, has asked a federal judge to approve $1.9 million of its funds for a “Key Employee Retention Plan” (KERP). The company wants to pay bonuses to 38 employees, which are vital for its further work and restructuring.
In a statement to the court, Voyager Digital argues that employees must be retained in all circumstances as they perform “basic accounting, cash and digital asset management, IT infrastructure, legal and other important functions,” Voyager said in a statement.
“The KERP program retains some critical non-insider employees and is consistent with retention programs in similar Chapter 11 cases. KERP provides for the payment of monetary remuneration to 38 employees who are not insiders,” the statement said.
However, the Official Committee of Unsecured Creditors of Voyager Digital does not believe that the company needs to pay remuneration to employees, without which restructuring and further activities of the company is impossible. Voyager employees “have already received good compensation, they said,” and otherwise the company has done little to cut costs.
“The debtors did not provide any evidence that the 38 members were going to leave the company, other than statements that these employees are needed. And that’s because there is no such evidence. As of the date of filing the petition, only 12 of the debtor’s approximately 350 employees had 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 to restructure and resume the withdrawal of cash from the platform.
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