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Voyager creditors are pushing back against the bankrupt company's plan to reward key employees
The lender has taken no action to cut staff, the creditors' committee said There is no evidence that "key" employees will resign, they added Creditors of bankrupt Voyager do not want the lender to pay retention bonuses to employees, arguing the firm has not given reasons why the payments are needed. They also raised issues with Voyager making no effort to reduce its workforce, while other companies such as Coinbase, Bitpanda, BlockFi and Blockchain.com have laid off about 20% each, a filing showed on Friday. Even after the opening of insolvency proceedings, Voyager still has 350 employees on the...
Voyager creditors are pushing back against the bankrupt company's plan to reward key employees
- Der Kreditgeber habe keine Maßnahmen zum Personalabbau ergriffen, teilte der Gläubigerausschuss mit
- Es gebe keine Beweise dafür, dass „Schlüssel“-Mitarbeiter kündigen würden, fügten sie hinzu
Bankrupt Voyager's creditors don't want the lender to pay employee retention bonuses, arguing the company hasn't given reasons why the payments are needed.
They also raised issues with Voyager making no effort to reduce its workforce, while other companies such as Coinbase, Bitpanda, BlockFi and Blockchain.com have laid off about 20% each, a submission shown on Friday. Even after the opening of bankruptcy proceedings, Voyager still has 350 employees on its payroll.
“The foregoing companies continue to operate in the normal course of business, while the debtors’ [Voyager] platform has been essentially frozen with no or minimal operations for the past seven weeks,” lawyers representing the committee wrote.
Their objection comes about three weeks after Voyager filed a Movement He asked a judge to approve a Key Employee Retention Plan (KERP) that cost $1.9 million.
Under that program, Voyager designated 38 employees as vital to the company because of "valuable institutional knowledge" that would be expensive to quickly replace. They would perform accounting, cash and digital asset management, IT infrastructure, legal, human resources and other functions for the company, according to the application.
But the creditors' committee is not convinced that the 38 key employees need retention bonuses because Voyager has provided no evidence that they could quit. Additionally, only 12 employees have voluntarily resigned since the bankruptcy filing, they pointed out.
“This lack of turnover is due to the current job market in the cryptocurrency space, which is due to the industry-wide layoffs mentioned above,” they said.
A Voyager spokesman did not immediately respond to Blockworks' request for comment.
The committee argues that work at Voyager is now limited to routine maintenance and updates only. They believe these can be accomplished by the current employee base as long as the turnover rate is low.
“First, given the downturn in the cryptocurrency industry as a whole, the job market is relatively barren,” the creditors said. "Second, given the recent cutbacks and layoffs across the industry, a bevy of recently terminated professionals could be filling their roles. The facts and circumstances do not support a KERP in these Chapter 11 cases."
A court hearing on the motion is scheduled for August 24 at 10 a.m. ET.
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The post-Voyager creditors objection to bankrupt company's plan to reward key personnel is not financial advice.