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- Trustee who is in charge of the celsius chapter 11 bankruptcy case opposed to the retention bonus worth $2.96 million
- The Trustee has opposed to a move by the company that would have given 62 of its 275 workers a retention bonus
- The Celcius is unable to provide sufficient information that will justify such a high amount.
The Trustee who is in charge of the Celsius chapter 11 bankruptcy case, William Harrington has opposed the retention bonus worth $2.96 million saying that there is lack of sufficient information and evidence.
In his Supporting statement which was submitted on october 27 the trustee slammed banged Celcius stating that
“ It defies logic, not to mention the Bankruptcy code, that a corporation where the bulk of its activities are no longer delivering services, would suddenly propose a multi-million dollar bonus scheme.”
William Harrington has opposed a move by the company that would have given 62 of its 275 workers a retention bonus totalling $2.96 million. The trustee said that the company should provide appropriate as well as reasonable based on the facts of the case. Without any identifiable metrics and according to the trustee the company has failed to provide the same.
However the objection does not say that the employees of the celsius do not deserve an essential employee retention program (KERPs) Key Employee Retention programs but the problem is that celsius is unable to provide sufficient information that will justify such a high amount.
Key Employee Retention Program (KERP) is the organizational goal of keeping productive and talented workers and reducing turnover by fostering a positive work atmosphere to promote engagement. As well as it is designed to motivate employees to advance a successful restructuring outcome.
And like all the information like the personal information of celsius creditors , details of the Keep recipients has also been kept away from the public eye and is only provided to the court, the official Committee of Unsecured Creditors , and the Trustee.
In July U.S crypto lender Celsius network filed for bankruptcy with about $167 million in cash on hand and assets worth $4.3 billion to users according to the bankruptcy filing and since then Celcius network is facing trouble continuously. The company also recently declared that it is debt free. The company announced on July 7 that it is debt free but the same day after the announcement another problem knocked the door of the company when a former employee filed a lawsuit against the company.
The company has been in trouble since December 2021 when the company lost $54 million worth of Bitcoin that had been invested with the DeFi platform . Another choice which went wrong was the decision to invest in Ether token with Lido Finance, a DeFi platform, in june 2022.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
