The so-called “key employee retention plan” or KERP allows Voyager to pay specific employees considered crucial to the exchange’s ongoing operation as a reward for them to continue dedication to the organization after bankruptcy.
“The departure of the Debtors’ key employees during these chapter 11 cases would destroy value, harm the Debtors’ restructuring process, and adversely affect the Debtors’ ability to operate in the ordinary course upon emergence,” said Voyager in its request for the funds.
Cash rewards capped at $1.9 million for 38 employees performing “essential accounting, cash and digital asset management, IT infrastructure, legal and other critical functions for the Debtors.” However, at a hearing yesterday, counsel told Judge Michael Wiles that the amount would only be about $1.6 million for more than 30 employees, as some have left the company. The names and titles of the recipients will also be sealed in detail.
Also at the hearing, Voyager counsel confirmed that no senior management positions were counted among the employees who received compensation.
Voyager fell in crisis because of its association with Three Arrows Capital (3AC). The company suspended withdrawals from July 2 and declared bankruptcy under chapter 11 only 3 days later. Nearly $5 billion in crypto assets from over 3.5 million US customers have been frozen under bankruptcy proceedings. Since then, it has been winding its way through the process and recently received approval to return $270 million in cash deposits to customers.
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