Amid the financial crisis rocking bankrupt crypto lender Voyager Digital, indications have emerged that the firm’s creditors have reacted strongly to the idea of employee bonuses, stating that the company’s staff is already well compensated. Creditors are disappointed that the company made such a request instead of working to fix the current problem on the ground.
The creditors’ objection comes after bankrupt lender Voyager submitted a motion on August 2, asking the court to approve an employee retention plan, costing the firm a staggering $1.9 million. In a bankruptcy filing at a court in southern New York, creditors argue that Voyager Digital has failed to provide enough evidence to justify its request. The creditors also added there isn’t any evidence to show that the firm’s remaining 38 employees are threatening to resign.
According to Voyager, through its submitted motion, the employees in question are highly knowledgeable and hard to replace, adding that their invaluable knowledge of the industry and crypto space, in general, has kept the company going all the while.
Voyager Digital’s financial woes continue
As the lender continues working with its attorneys and the relevant agencies to find a solution to its financial crises, the firm’s efforts to rise out of its current predicament have faced setbacks, with lenders refusing to come to its aid.
It should be recalled that the crypto lender filed for Chapter 11 bankruptcy in July and has not come up with a tangible solution so far. Meanwhile, the court handling the issue had earlier approved the company’s request to return customers $270 million, which was hitherto deposited in a custodial account held at the Metropolitan Commercial Bank.
With creditors firmly against Voyager’s request for bonus payouts to staff, It remains to be seen how the lender compensates its team as an incentive to keep them working, at least in the interim. Analysts expect the lender to have difficulty surmounting its current financial predicament, but they believe it will weather the storm.