- In all, KERP benefits amount to 22.5% of the salary of those who qualify for them.
- The KERP payment request was granted by Judge Michael Wales.
Troubled Cryptocurrency Brokerage voyager digital I got permission from the New York Bankruptcy Court to offer key employee retention incentives.
On August 2, the company submitted a petition to United States Bankruptcy Court To obtain permission for a Key Personnel Retention Scheme (KERP), which will pay approximately $2 million to 38 workers essential to the smooth running of the exchange.
In a court petition dated August 19, 2022, creditors of the company that filed for bankruptcy in July 2022 argued against Voyager’s KERP payments, arguing that payments to investors should take precedence over payments to “well-paid” workers.
Court documents show that Voyager and the creditors’ committee reached an arrangement to drop their objection to the planned KERP program. The most important of which is the adoption of steps to reduce operating costs by $4.6 million. In all, KERP benefits amount to 22.5% of the salary of those who qualify for them.
According to Voyager, 38 factors, “basic accounting, cash and digital asset management, information technology infrastructure, legal and other functions vital to debtors.” The US Department of Justice’s Office of the Guardian, which manages the bankruptcy process and private trustees, has expressed its concerns in the court filing as well.
The KERP payment request was finally accepted by U.S. Bankruptcy Judge Michael Wales, who agreed with the Voyagers legal team that none of the bonus recipients would choose, sit or report to the board of directors and had no management control over the company.
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