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Home Court filings Kservicing Bankruptcy Order Sustaining Fifth Omnibus Objection to Certain Claims — In re KServicing Wind Down Corp., et al.

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Order Sustaining Fifth Omnibus Objection to Certain Claims — In re KServicing Wind Down Corp., et al.

Summary

An order of the U.S. Bankruptcy Court for the District of Delaware in In re KServicing Wind Down Corp., et al., Case No. 22-10951 (CTG), filed January 7, 2026 as Doc 1192. It sustains the Fifth (Substantive) Omnibus Objection of the KServicing Wind Down Estates to certain no liability claims and unliquidated claims, and disallows and expunges in their entirety the Disputed Claims listed on Schedule 1 and Schedule 2. The order reserves rights on other claims, preserves the Wind Down Officer's right to object on other grounds, treats each objection as a separate contested matter under Bankruptcy Rule 9014, and authorizes Stretto, Inc. to update the Claims Register. It is dated January 7th, 2026 over the name of United States Bankruptcy Judge Craig T. Goldblatt. Schedule 1 (Doc 1192-1) and Schedule 2 (Doc 1192-2) list the claims with the reasons for disallowance.

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No. 22-10951 · Doc. 1192 · Docket on CourtListener

Full text

               Case 22-10951-CTG              Doc 1192        Filed 01/07/26        Page 1 of 3




                       IN THE UNITED STATES BANKRUPTCY COURT
                            FOR THE DISTRICT OF DELAWARE

In re:                                                     Chapter 11

KServicing Wind Down Corp., et al., 1                      Case No. 22-10951 (CTG)

                Post-Confirmation Debtors.                 (Jointly Administered)

                                                           Re: Docket No. ______

          ORDER SUSTAINING KSERVICING WIND DOWN CORPORATION’S
             FIFTH (SUBSTANTIVE) OMNIBUS OBJECTION TO CERTAIN
            (I) NO LIABILITY CLAIMS, AND (II) UNLIQUIDATED CLAIMS

         Upon the objection (the “Objection”) 2 of the post-confirmation Debtors’ wind down

estates (“KServicing Wind Down Estates”), for entry of an order (this “Order”) sustaining the

Objection and disallowing and expunging in its entirety the claims listed in Schedule 1 (the “No

Liability Claims”) and Schedule 2 (the “Unliquidated Claims”) attached hereto (the “Disputed

Claims”), and this Court having jurisdiction to consider the Objection pursuant to 28 U.S.C. §§

157 and 1334 and the Amended Standing Order of Reference from the United States District Court

for the District of Delaware, dated February 29, 2012; and this Court being able to issue a final

order consistent with Article III of the United States Constitution; and venue of these Chapter 11

Cases and the Objection in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and

this matter being a core proceeding pursuant to 28 U.S.C. § 157(b); and this Court having found

that proper and adequate notice of the relief requested therein has been provided in accordance




1
  The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification
number, as applicable are: KServicing Wind Down Corp. (f/k/a Kabbage, Inc. d/b/a KServicing) (3937); KServicing
Wind Down Canada Holdings LLC (f/k/a Kabbage Canada Holdings, LLC) (N/A); KServicing Wind Down Asset
Securitization LLC (f/k/a Kabbage Asset Securitization LLC) (N/A); KServicing Wind Down Asset Funding 2017-A
LLC (f/k/a Kabbage Asset Funding 2017-A LLC) (4803); KServicing Wind Down Asset Funding 2019-A LLC (f/k/a
Kabbage Asset Funding 2019-A LLC) (8973); and KServicing Wind Down Diameter LLC (f/k/a Kabbage Diameter,
LLC) (N/A). The Debtors’ mailing and service address is 925B Peachtree Street NE, Suite 383, Atlanta, GA 30309.
2
  Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Objection.



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              Case 22-10951-CTG           Doc 1192      Filed 01/07/26      Page 2 of 3




with the Bankruptcy Rules and the Local Rules, and that, except as otherwise ordered herein, no

other or further notice is necessary; and responses (if any) to the Objection having been withdrawn,

resolved or overruled on the merits; and a hearing having been held to consider the relief requested

in the Objection and upon the record of the hearing and all of the proceedings had before this

Court; and this Court having found and determined that the relief set forth in this Order is in the

best interests of the KServicing Wind Down Estates, their estates, their creditors, and other parties

in interest; and that the legal and factual bases set forth in the Objection establish just cause for the

relief granted herein; and after due deliberation and sufficient cause appearing therefore;

         IT IS HEREBY ORDERED THAT:

         1.     The Objection is SUSTAINED as provided herein.

         2.     The Disputed Claims are hereby disallowed and expunged in their entirety.

         3.     This Order has no res judicata, estoppel, or other effect on the validity, allowance,

or disallowance of, and all rights to object to or defend on any basis are expressly reserved with

respect to any claims referenced or identified in the Objection other than the Disputed Claims

listed on Schedule 1 and Schedule 2, attached hereto.

         4.     The Wind Down Officer’s right to object on any other grounds that he or

KServicing Wind Down Estates discovers is preserved.

         5.     KServicing Wind Down Estates and the Wind Down Officer are authorized and

empowered to execute and deliver such documents, and to take and perform all actions necessary

to implement and effectuate the relief granted in this Order.

         6.     Nothing in this Order or the Objection is intended or shall be construed as a waiver

of any of the rights KServicing Wind Down Estates or the Wind Down Officer may have to enforce

rights of setoff against the Claimants.



                                                   2
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         7.       Nothing in the Objection or this Order, nor any actions or payments made by

KServicing Wind Down Estates pursuant to this Order, shall be construed as: (a) an admission as

to the amount of, basis for, or validity of any claim against KServicing Wind Down Estates under

the Bankruptcy Code or other applicable non-bankruptcy law; (b) a waiver of the Wind Down

Officer’s or any other party in interest’s right to dispute any claim; (c) a promise or requirement

to pay any particular claim; (d) an implication or admission that any particular claim is of a type

specified or defined in this Order; (e) an admission as to the validity, priority, enforceability, or

perfection of any lien on, security interest in, or other encumbrance on property of the KServicing

Wind Down Estates or the Debtors’ estates; or (f) a waiver of any claims or causes of action which

may exist against any entity under the Bankruptcy Code or any other applicable law.

         8.       The Wind Down Officer’s objection to each of the No Liability Claims and

Unliquidated Claims addressed in the Objection constitutes a separate contested matter as

contemplated by Bankruptcy Rule 9014. This Order shall be deemed a separate order with respect

to each claim. Any stay of this Order pending appeal by any of the Claimants subject to this Order

shall only apply to the contested matter which involves such claimant and shall not act to stay the

applicability and/or finality of this Order with respect to the other contested matters addressed in

the Objection and this Order.

         9.       This Order is immediately effective and enforceable, notwithstanding the possible

applicability of Bankruptcy Rule 6004(h) or otherwise.

         10.      Stretto, Inc., KServicing Wind Down Estates’ noticing and claims agent, is

authorized to update the Claims Register to reflect the relief granted in this Order.

         11.      This Court shall retain jurisdiction with respect to any matters, claims, rights or

disputes arising from or related to the Objection or the implementation of this Order.



                                                   3
17619517/13    Dated: January 7th, 2026            CRAIG T. GOLDBLATT
               Wilmington, Delaware                UNITED STATES BANKRUPTCY JUDGE
              Case 22-10951-CTG   Doc 1192-1    Filed 01/07/26   Page 1 of 2




                                      Schedule 1
                                  No Liability Claims




17619517/13
             Claimant   Claim Date Filed   Claim Number           Debtor & Case No.                  Claim Amount                                     Reason for Disallowance


Bhambani, Oneal                                             Kabbage, Inc. d/b/a KServicing        Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022           85                    22-10951                     General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Douglas, James                                                  Kabbage Diameter, LLC             Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022           3                     22-10956                     General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Douglas, James                                               Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022           92                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Goldberg, Laura                                              Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/30/2022          130                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Jain, Deepesh                                             Kabbage Asset Funding 2017-A, LLC       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/30/2022           5                     22-10954                     General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Jain, Deepesh                                             Kabbage Asset Funding 2019-A, LLC       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
                                                                                                                                                                                                                Case 22-10951-CTG

Address on file            11/30/2022           7                     22-10955                     General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Jain, Deepesh                                                Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/30/2022          127                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

McGowan, David                                               Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022           89                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.     Doc 1192-1

Mendel, Rebecca                                              Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022          111                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

Zimmerman, Amy                                               Kabbage, Inc. d/b/a Kservicing       Unknown/Unliquidated   Claims must be disallowed for no liability because indemnification shall be rejected
Address on file            11/29/2022          114                     22-10951                    General Unsecured     as of the Effective Date pursuant to Section 8.5 of the Plan and related sections.

                                                                                                                                                                                                                Filed 01/07/26




                                                                                                                                                                                                                Page 2 of 2




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              Case 22-10951-CTG   Doc 1192-2   Filed 01/07/26   Page 1 of 2




                                       Schedule 2
                                  Unliquidated Claims




17619517/13
        Claimant   Claim Date Filed   Claim Number           Debtor & Case No.              Claim Amount                             Reason for Disallowance

Bhambani, Oneal                                        Kabbage, Inc. d/b/a KServicing    Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/29/2022            85                    22-10951                 General Unsecured     information to determine value.
Douglas, James                                             Kabbage Diameter, LLC         Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/29/2022            3                     22-10956                 General Unsecured     information to determine value.
Douglas, James                                          Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/29/2022            92                     22-10951                General Unsecured     information to determine value.
Goldberg, Laura                                         Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/30/2022           130                     22-10951                General Unsecured     information to determine value.
Jain, Deepesh                                        Kabbage Asset Funding 2017-A, LLC   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/30/2022            5                     22-10954                 General Unsecured     information to determine value.
Jain, Deepesh                                        Kabbage Asset Funding 2019-A, LLC   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/30/2022            7                     22-10955                 General Unsecured     information to determine value.
Jain, Deepesh                                           Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/30/2022           127                     22-10951                General Unsecured     information to determine value.
McGowan, David                                          Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
                                                                                                                                                                                       Case 22-10951-CTG

Address on file      11/29/2022            89                     22-10951                General Unsecured     information to determine value.
Mendel, Rebecca                                         Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/29/2022           111                     22-10951                General Unsecured     information to determine value.
Zimmerman, Amy                                          Kabbage, Inc. d/b/a Kservicing   Unknown/Unliquidated   Claim asserts a contingent, unliquidated amount and lacks sufficient
Address on file      11/29/2022           114                     22-10951                General Unsecured     information to determine value.

                                                                                                                                                                                       Doc 1192-2




                                                                                                                                                                                       Filed 01/07/26




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