Voyager’s Bold Move

In a spirited court session, one New York bankruptcy court decided that despair is not the only option for Voyager Digital, a beleaguered cryptocurrency brokerage that has recently been navigating the treacherous waters of bankruptcy. The court granted permission for Voyager to distribute $1.9 million in retention bonuses, ensuring that some of its critical employees can continue their hard work with fewer financial worries. Because, let’s be honest, who doesn’t love a good bonus?

Understanding KERP

So, what exactly is the Key Employee Retention Plan (KERP)? In essence, it’s Voyager’s way of saying, “Hey, don’t leave us now!” The plan focuses on 38 pivotal employees identified as essential for the company’s ongoing operations, eligible for bonuses that cumulatively amount to a significant 22.5% of their annual salaries. It’s like a techy version of a golden handshake, just without the handshaking part.

Creditors and Controversy

You might think everyone would be on board with keeping the ship afloat, but some creditors blew their whistles on this one. They argued in a court filing that any payments made should prioritize hungry investors over “well-compensated” employees. Imagine a room filled with creditors pointing fingers while shouting, “We could have avoided this whole mess if we had just had more chips at the poker table!”

Settling the Score

After some deal-making magic, Voyager and the committee of creditors struck a deal to drop the opposition to the KERP under certain conditions. This included Voyager promising to trim operational costs by $4.6 million. Think of it as a team effort — while some staff get bonuses, others need to sweat it out a little more to save face.

Addressing Concerns

The U.S. Trustee’s Office, the watchdog lurking behind bankruptcy curtains, raised red flags over the KERP proposal. They claimed that the employee list might have included “insiders” and that Voyager failed to provide sufficient evidence to justify these extravagant bonuses. I mean, who wouldn’t be concerned if bonuses were handed out like candy at a parade?

Judgment Day

However, U.S. Bankruptcy Judge Michael Wiles donned his gavel and approved the motion for KERP payouts, siding with Voyager’s legal team. They argued that the beneficiaries aren’t tight-knit with the board of directors or running the company’s ship directly. So here’s the moral of the story: sometimes, it’s not just about who’s at the helm but also about ensuring that the crew doesn’t abandon ship!