The US Bankruptcy Court has given the green light to pay bonuses to key personnel of Voyager Digital, which has flagged bankruptcy.
Voyager requested a bonus of $1.9 million on August 2 to retain key employees. Voyager, however, objected to the proposal by the Official Committee of Unsecured Creditors, on the grounds that it was “already well compensated”. Now it has been accepted by the Bankruptcy Court in New York to pay the staff.
Voyager Will Be able to Pay Bonuses to Key Employees
U.S. Bankruptcy Court Judge Michael Wiles ultimately upheld the motion for KERP payments, accepting Voyagers’ legal team’s argument that none of the bonus team was appointed, sits on the board of directors, or has management control of the company.
According to U.S. Bankruptcy Court filings, an agreement was reached between Voyager and the creditors committee to overturn the previously contested denial of the proposed KERP (Key Employee Retention Plan) under certain circumstances.
Chief among the conditions is the implementation of operational cost-cutting measures to achieve savings of $4.6 million. KERP payments will be worth 22.5 percent of the annual salary of eligible employees.
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