The Committee of Creditors of Voyager Digital Holdings’ has submitted a motion to challenge the proposal of the company to retain its workers by providing monetary awards due to providing their services to the firm. On 2nd August, a motion was filed by Voyager Digital to the New York’s Southern District-based Bankruptcy Court in the United States.
This was done to seek an approval for the Key Employee Retention Plan (KERP), targeting to disseminate up to $1.9M among the chief workers who offered significant services in the exchange’s actions.
Voyager Creditors Object to Its Key Employee Retention Plan
Nonetheless, the creditors of the exchange venue did not consent to the proposal presented by it. A motion was also filed by the creditors and they mentioned their concerns regarding the respective proposal. They noted that at the moment when numerous creditors are endeavoring to recompense their fundamental expenses because of the deficient business model of the debtors, the debtors are planning to compensate their workers by distributing bonuses among them.
In addition to that, the creditors asserted that no sufficient reasons were provided by Voyager that would justify the retention strategy. Along with this, the creditors brought to the front that the evidence provided by Voyager was not sufficient to verify if the workers included in its retention strategy are intending to leave the company.
Mark Cuban Sued for Endorsing Voyager Products
Moreover, the filing from the side of the creditors additionally specified that the present crypto winter makes it easier for the platform to appoint people expert people from a number of those who are presently available. Keeping in view the recent layoffs and reductions witnessed throughout the industry of the cryptocurrency, a multitude of newly-eliminated professionals could substitute the previous ones and can handle their positions, as noted by the creditors.
Formerly this month, Mark Cuban (a billionaire) got sued because of advocating for the products of Voyager. The lawsuit was filed by a law firm against the billionaire pursuing a jury hearing over the respective case. In that lawsuit, it was accused Cuban of having utilized his skills to allure the investors to invest their life savings thereof into the risky products. After that, a bankruptcy filing was submitted by the crypto venue, disclosing that it owes funds to nearly 100,000 creditors.
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