William Harrington reportedly stated that Celsius must provide evidence to support the authenticity of the incentives.
According to Cointelegraph, William Harrington, the United States trustee in charge of the Celsius Chapter 11 bankruptcy case, has raised concerns to the company’s request that 62 of its 275 workers get retention payments totaling $2.96 million.
“It defies logic, not to mention the Bankruptcy Code, that a corporation would suddenly propose a multi-million dollar compensation system when the bulk of its activities are no longer engaged in the provision of services,” Harrington said.
According to Cointelegraph, Harrington claimed that Celsius must provide evidence in support of the validity of the incentives based on the case’s circumstances with regard to the “bonus motion.” Harrington said that Celsius failed because there was allegedly no discernible measure. Although the complaint makes no reference to Celsius personnel being unworthy of a key employee retention program (KERP), it is thought to have drawn attention to the fact that the data Celsius submitted was insufficient to support the indicated sum. It is thought that KERPs are created to motivate staff and ensure a successful reorganization.
KERP beneficiaries’ personal information hasn’t been made public, according to Cointelegraph, unlike the personal information of Celsius creditors. To the court, the Official Committee of Unsecured Creditors, and the Trustee, only a breakdown has been given. The Trustee is said to have created a problem by stating that other interested parties who are unable to argue should be considered insiders, which might disqualify them from receiving a KERP.
Additionally, Cointelegraph said that Celsius filed a bonus motion on October 11, 2022, with a hearing on the proposal and associated relief scheduled for November 1 of that same year. At Bitcoin miner Core Scientific, who alleged on October 19, 2022, that Celsius has refused to pay its debts since declaring bankruptcy, the boss has also come under fire for causing financial issues.
