Court filing

Motion to File Consolidated Creditor List and Redact Personal Identification Information — In re KServicing

Record facts

Court	U.S. Bankruptcy Court for the District of Delaware
Filed	2022-10-03

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 5 · 2022-10-03 · Docket on CourtListener

Summary

A first-day motion of the debtors for an order authorizing consolidated creditor lists, redaction of certain personal identification information, and special electronic noticing procedures, filed October 3, 2022 as Doc 5 in In re: Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951, in the United States Bankruptcy Court for the District of Delaware. Invoking sections 521 and 105(a) of the Bankruptcy Code and Bankruptcy Rules 1007, 2002, 9007 and 9008, it asks to file a single consolidated Creditor Matrix and a list of the 30 largest unsecured creditors, covering approximately 460,000 potential creditors. It asks authority under 11 U.S.C. § 107(c)(1) to redact home and email addresses of individuals from that matrix and other filings. It also seeks email service on approximately 456,000 current and former borrowers, stating postage alone for one mailing would exceed $501,600.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

RLF1 28018180v.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
------------------------------------------------------------ x

In re
:
Chapter 11

KABBAGE, INC. d/b/a KSERVICING, et al., :
Case No. 22-10951 ( )

Debtors.1
:
(Joint Administration Requested)
------------------------------------------------------------ x

MOTION OF DEBTORS FOR ENTRY OF AN
ORDER (I) AUTHORIZING THE DEBTORS TO (A) FILE
AND MAINTAIN CONSOLIDATED CREDITOR LISTS,
AND (B) REDACT CERTAIN PERSONAL IDENTIFICATION
INFORMATION FOR INDIVIDUALS, (II) APPROVING SPECIAL
ELECTRONIC NOTICING PROCEDURES, AND (III) GRANTING RELATED RELIEF
Kabbage, Inc. d/b/a KServicing and its debtor affiliates, as debtors and debtors in
possession in the above-captioned chapter 11 cases (collectively, the “Debtors” and, together with
their non-Debtor affiliates, the “Company”), respectfully move and represent as follows in support
of this motion (this “Motion”):2
Relief Requested
1.
By this Motion, the Debtors request, pursuant to sections 521 and 105(a) of
title 11 of the United States Code (the “Bankruptcy Code”), Rules 1007, 2002, 9007, 9008 of the
Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), and Rules 1001-1(c), 1007-1,
and 1007-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States

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: Kabbage, Inc. d/b/a KServicing (3937); Kabbage Canada Holdings, LLC (N/A); Kabbage
Asset Securitization LLC (N/A); Kabbage Asset Funding 2017-A LLC (4803); Kabbage Asset Funding 2019-A
LLC (8973); and Kabbage Diameter, LLC (N/A). Kabbage is a trademark of American Express used under license;
Kabbage, Inc. d/b/a KServicing is not affiliated with American Express. The Debtors’ mailing and service address
is 925B Peachtree Street NE, Suite 383, Atlanta, GA 30309.
2 The facts and circumstances supporting the relief requested herein are set forth in the First Day Declaration (as
defined below) filed contemporaneously herewith. Capitalized terms used but not defined herein shall have the
respective meanings ascribed to such terms in the First Day Declaration (as defined below).
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RLF1 28018180v.1
Bankruptcy Court for the District of Delaware (the “Local Rules”), that the Court (i) authorize,
the Debtors to (a) file a single, consolidated list of creditors, maintain a single, consolidated
mailing matrix (the “Creditor Matrix”), and file a single, consolidated list of the Debtors’ 30
largest unsecured creditors, in lieu of filing and maintaining separate creditor lists and mailing
matrices for each Debtor, and (b) redact certain personal identification information for individuals;
(ii) approve special electronic noticing procedures (the “Special Electronic Noticing
Procedures”); and (iii) grant related relief.
2.
A proposed form of order granting the relief requested herein is annexed
hereto as Exhibit A (the “Proposed Order”).
Jurisdiction and Venue
3.
The Court has jurisdiction to consider this matter 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. This is a core proceeding
pursuant to 28 U.S.C. § 157(b). Pursuant to Rule 9013-1(f) of the Local Rules, the Debtors consent
to the entry of a final order by the Court in connection with this Motion if it is later determined
that the Court, absent consent of the parties, cannot enter final orders or judgments consistent with
Article III of the United States Constitution. Venue is proper before the Court pursuant to 28
U.S.C. §§ 1408 and 1409.
Background
4.
On the date hereof (the “Petition Date”), the Debtors commenced with the
Court voluntary cases under chapter 11 of title 11 of the Bankruptcy Code (the “Chapter 11
Cases”). The Debtors are authorized to continue operating their business and managing their
properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
No trustee, examiner, or statutory committee has been appointed in these Chapter 11 Cases.
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5.
Contemporaneously herewith, the Debtors have filed a motion requesting
joint administration of their Chapter 11 Cases pursuant to Bankruptcy Rule 1015(b) and Local
Rule 1015-1.
6.
Additional information regarding the Debtors’ business, capital structure,
and the circumstances leading to the commencement of these Chapter 11 Cases is set forth in the
Declaration of Deborah Rieger-Paganis In Support of Debtors’ Chapter 11 Petitions and First
Day Relief (the “First Day Declaration”), filed contemporaneously herewith.
Relief Requested Should Be Granted
A.
Request to File a Consolidated List of Creditors
7.
The Local Rules set forth several requirements regarding the filing and
maintenance of creditor lists. Section 521 of the Bankruptcy Code, Bankruptcy Rule 1007(c)(1),
and Local Rule 1007-2(a) require that a debtor in a voluntary chapter 11 case “file with the petition
a list containing the name and complete address of each creditor in such format as directed by the
Clerk’s Office Procedures.” Local Rule 2002-1(f)(v) requires that each debtor in jointly
administered cases, or its duly retained claims and noticing agent, maintain a separate creditor
mailing matrix.
8.
Bankruptcy Rule 1007(d) also requires the debtor to file with its petition “a
list containing the name, address and claim of the creditors that hold the 20 largest unsecured
claims, excluding insiders.” This list is used primarily by the Office of the United States Trustee
in evaluating the types and amounts of unsecured claims asserted against a debtor and to identify
potential creditors to serve on an official committee if one is appointed under section 1102 of the
Bankruptcy Code.
9.
Local Rule 1001-1(c), however, permits modification of the Local Rules by
the Court “in the interest of justice.” The Debtors submit that permitting them to file and maintain
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RLF1 28018180v.1
a single, consolidated Creditor Matrix, in lieu of filing and maintaining separate creditor lists and
mailing matrices for each Debtor, is warranted. The Debtors operate as an integrated business and
share cash management and operational systems. Accordingly, in the ordinary course of the
Debtors’ business, they maintain various consolidated lists of their approximately 460,000
potential creditors’ names and addresses. Requiring the Debtors to segregate and convert their
records to a debtor-specific creditor matrix format would be an unnecessarily burdensome task
that would result in a significant waste of estate resources and the needless creation of duplicate
mailings. Moreover, because the lists of the Debtors’ largest unsecured creditors will substantially
overlap, and certain Debtors may have fewer than 20 unsecured creditors with substantial claims,
the Debtors submit that filing separate lists of their 20 largest creditors would be of limited utility
while consuming a disproportionate amount of the resources of the Debtors and their advisors.
10.
The Debtors, in consultation with Omni Agent Solutions (“Omni”), their
proposed claims, noticing and administrative agent,3 have determined that greater efficiencies can
be obtained for the estates by using the Debtors’ existing records to generate a consolidated
Creditor Matrix and a consolidated list of the Debtors’ 30 largest unsecured creditors. Omni will
continue to maintain a separate claims register for each of the Debtors’ cases, thus ensuring that
the creditors’ substantive rights will not be impaired by the relief requested herein. In addition,
the Debtors submit that if any of these Chapter 11 Cases converts to a case under chapter 7 of the
Bankruptcy Code, the applicable Debtor will file its own creditor mailing matrix.
11.
Courts in this district have routinely approved relief similar to that requested
herein since the modifications to Local Rule 2002-1(f)(v) took effect. See, e.g., In re Renovate

3 Contemporaneously with the filing of this Motion, the Debtors have filed an application seeking the appointment of
Omni as their claims and noticing agent pursuant to 28 U.S.C. § 156(c).
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America, Inc., (LSS) (Bankr. D. Del. Dec. 21, 2020) (authorizing a consolidated creditor matrix
and list of largest unsecured creditors); In re 24 Hour Fitness Worldwide, Inc., No. 20-11558 (KB)
(Bankr. D. Del. June 16, 2020) (same); In re Charming Charlie Holdings, Inc., No. 19-11534
(CSS) (Bankr. D. Del July 12, 2019) (same); In re Cloud Peak Energy, Inc., No. 19-11047 (KG)
(Bankr. D. Del. May 14, 2019) (same).
12.
Accordingly, the Debtors respectfully request that the Court authorize the
Debtors to file and maintain a single, consolidated Creditor Matrix in these cases and to file a
single, consolidated list of their 30 largest unsecured creditors.
B.
Request to Redact Certain Personal Identifiable Information for Individual
Creditors and Interest Holders
13.
Section 107(c) of the Bankruptcy Code provides that the Court “for cause,
may protect an individual, with respect to the following types of information to the extent the court
finds that disclosure of such information would create undue risk of identity theft or other unlawful
injury to the individual[:] . . . [a]ny means of identification . . . contained in a paper filed, or to be
filed in a case under” the Bankruptcy Code. 11 U.S.C. § 107(c)(1)(A).
14.
The Debtors respectfully submit that it is appropriate to authorize the
Debtors to redact the home addresses or email addresses of individuals from the Creditor Matrix,
the Debtors’ schedules of assets and liabilities and statements of financial affairs (collectively, the
“Schedules”), affidavits or certificates of service, and any paper filed or to be filed with the Court
in these Chapter 11 Cases because such information could be used, among other things, to
perpetrate identity theft or to locate survivors of domestic violence, harassment, or stalking. This
risk is not merely speculative. In at least one recent chapter 11 case, the abusive former partner of
a debtor’s employee exploited the publicly accessible creditor and employee information filed in
the chapter 11 case to track the employee to her new address, which had not been publicly available
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until then, forcing the employee to change addresses again for her safety.4 The Debtors propose
to provide (if requested), on a confidential basis, an unredacted version of the Creditor Matrix and
any other applicable filings to the Debtors’ claims and noticing agent, the U.S. Trustee, any official
committee of unsecured creditors appointed in these Chapter 11 Cases, any subsequently appointed
trustee, the Court, and any party in interest upon reasonable request. In addition, any party in
interest that is not provided with an unredacted version of the applicable document upon request
may file a motion with the Court to obtain such documents.
15.
For these reasons, the Debtors respectfully submit that cause exists to
authorize the Debtors to redact, pursuant to 11 U.S.C. § 107(c)(1), the home addresses or email
addresses in respect of individuals who are listed on the Creditor Matrix, the Schedules, affidavits
or certificates of service, or any other document filed with the Court. Absent such relief, the
Debtors would unnecessarily render individuals more susceptible to identity theft and could
jeopardize the safety of individuals who, unbeknownst to the Debtors, are survivors of domestic
violence or stalking by publishing their home addresses without any advance notice or opportunity
to opt out or take protective measures.
C.
Proposed Special Electronic Noticing Procedures
16.
Bankruptcy Rule 2002 establishes the general rule for notifying creditors in
chapter 11 cases. Specifically, Bankruptcy Rule 2002(a) states that “the clerk, or some other
person as the court may direct, shall give the debtor, the trustee, all creditors and indenture trustees
at least 21 days’ notice by mail of: (1) the meeting of creditors under § 341 or § 1104(b) of the

4 The incident, which took place during the Charming Charlie chapter 11 proceedings in 2017, is described in the
“creditor matrix motion” filed in In re Charming Charlie Holdings Inc., No. 19-11534 (CSS) (Bankr. D. Del. July 11,
2019) [Docket No. 4].
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[Bankruptcy] Code.” Fed. R. Bankr. P. 2002(a). Bankruptcy Rule 2002(f) provides that such
notice of the order for relief shall be sent by mail to all creditors. See Fed. R. Bankr. P. 2002(f).
17.
The Company operates as a servicer and subservicer of small business
Paycheck Protection Program Loans (“PPP Loans”), and provides lenders of PPP Loans software
services. The Debtors have approximately 456,000 current and former Borrowers identified on
the Creditor Matrix. If the Debtors were to provide actual notice by mail of pleadings and hearings
to all such Borrowers, the costs could be astronomical. Omni estimates that the cost of postage
alone to mail a single notice to 456,000 Borrowers would exceed $501,600 (approximately
$410,400 on account of postage and $91,200 on account of labor). In addition to postage, however,
the Debtors would also have to pay for copying charges, printing charges, overhead costs, and
hourly fees for professionals. In fact, in the ordinary course of business, the Debtors’ primary
method of outbound communication with its Borrowers is primarily through email.
18.
Accordingly, given the excessive costs of mailing notices to all current and
former Borrowers identified on the Creditor Matrix, by this Motion, the Debtors are seeking
authority to provide Borrowers with email service in these Chapter 11 Cases in keeping with their
ordinary business practices, as outlined below, and to continue to offer these Borrowers the option
of electing to instead receive notices by first class or other physical mail delivery if they desire.5
 The Debtors will serve the notice of commencement of these Chapter 11
Cases and the section 341 meeting of creditors (the “Case Commencement
Notice”) via electronic mail on any Borrower with an account that has at
least one valid email address on file in the Debtors’ books and records.

5 For the avoidance of doubt, the proposed Special Electronic Noticing Procedures shall apply to all notices and
mailings that the Borrowers are entitled to receive in the Chapter 11 Cases, including, without limitation, the notice
of the hearing on approval of the Disclosure Statement; provided, however, that the Special Electronic Noticing
Procedures shall not apply to service of the notice of confirmation of any chapter 11 plan and any notices or
documents relating to solicitation of a plan and the Debtors shall seek separate relief with respect to the service of
such notices and documents.
Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 7 of 18

 The Debtors will publish the Case Commencement Notice in both the
national editions of The New York Times and USA Today. The Debtors will
also publish the Case Commencement Notice on the Debtors’ case
management website to be established by Omni and on the Debtors’
website.

 The Debtors will include with the Case Commencement Notice: (a)
information for accessing the case management website to be established
by Omni, where the recipient can obtain additional information about these
cases; and (b) instructions indicating that all future notices will be provided
to the recipient by email, if available, unless the recipient designates, either
in writing or via Omni’s website, that it wishes to receive physical notices
in connection with the Debtors’ cases. Creditors who do not have an email
address on file or who previously elected to receive physical notices will
also be given an opportunity to provide a current email address and to elect
to receive electronic service in connection with these bankruptcy cases. This
information (the “Electronic Noticing Instructions”) will be provided
substantially in the form of the language below:

6 On information and belief, the Debtors lack valid email addresses for, and would consequently send hard copy notice
to, approximately 18,000 Borrowers.
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RLF1 28018180v.1
NOTICE TO CURRENT BORROWERS
THE FILING OF THESE BANKRUPTCY CASES DOES NOT RELIEVE YOU OF YOUR
OBLIGATION TO CONTINUE TO MAKE TIMELY PAYMENTS IN CONNECTION WITH
FINANCING SERVICED BY THE DEBTORS

ELECTRONIC SERVICE NOTICE

IF THE DEBTORS HAVE A VALID E-MAIL ADDRESS FOR YOUR ACCOUNT IN THEIR
RECORDS, ALL FUTURE NOTICES TO YOU IN CONNECTION WITH THESE CHAPTER 11
CASES WILL BE DELIVERED ONLY TO THAT E-MAIL ADDRESS UNLESS YOU INDICATE
THAT YOU WISH TO RECEIVE FUTURE NOTICES BY PHYSICAL MAIL BY SENDING A
WRITTEN REQUEST, TOGETHER WITH YOUR MAILING ADDRESS, TO THE DEBTORS AT THE
FOLLOWING ADDRESS OR BY SUBMITTING YOUR REQUEST VIA THE DEBTORS CASE
MANAGEMENT WEBSITE AT:

Kabbage, Inc. d/b/a KServicing
c/o Omni
5955 De Soto Ave., Suite 100
Woodland Hills, CA 91367
kservicinginquiries@omniagnt.com

https://omniagentsolutions.com/kservicing
https://omniagentsolutions.com/kservicing-hard-copy-opt-in

IF YOU WISH TO PROVIDE A CURRENT EMAIL ADDRESS TO THE DEBTORS IN ORDER TO
RECEIVE ELECTRONIC SERVICE IN THESE CASES, YOU MAY ALSO DO SO BY WRITING TO
THE DEBTORS AT THE ABOVE ADDRESS OR UTILIZING THEIR CASE MANAGEMENT
WEBSITE.

ADDITIONAL INFORMATION

YOU MAY ALSO ACCESS INFORMATION ABOUT THE CASE AT THE DEBTORS’ CASE
MANAGEMENT WEBSITE OR YOU MAY VIEW ALL DOCUMENTS FILED IN THE CASE THROUGH
PACER (PUBLIC ACCESS TO COURT ELECTRONIC RECORDS) AT WWW.PACER.GOV.

19.
The Debtors submit that the combination of email, mail, and publication of
the Notice of Commencement is the most practical method by which to notify the Borrowers of
the commencement of these Chapter 11 Cases and constitutes an efficient use of the estates’
resources. The Debtors further submit that the procedures outlined above are also consistent with
other procedures previously approved by this district. See, e.g., In re Renovate America, Inc.,
(LSS) (Bankr. D. Del. Dec. 21, 2020) (authorizing notice of commencement of the case to be
provided to homeowners by email, and to the extent the Debtors received a “bounce-back,” via
first-class mail); In re 24 Hour Fitness Worldwide, Inc., (KBO) (Bankr. D. Del. June 25, 2020)
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(authorizing notice of commencement of the case to be provided to members and guests by only
(i) email notice, to the extent available, (ii) notice by mail, to the extent an email address was
unavailable, and (iii) by publication notice to the extent that the debtors had neither email addresses
nor physical addresses on file; no further notices to current and former members and guests of the
notice of commencement were required). Further, any party in interest, including Borrowers, may
file a proper notice request pursuant to Bankruptcy Rule 2002.
Notice
20.
Notice of this Motion will be provided to (a) the Office of the United States
Trustee for the District of Delaware; (b) the holders of the 30 largest unsecured claims against the
Debtors on a consolidated basis; (c) the Federal Reserve Bank; (d) Customers Bank; (e) Cross
River Bank; (f) the United States Department of Justice; (g) the Federal Trade Commission; (h) the
Small Business Administration; (i) the Internal Revenue Service; (j) the Securities and Exchange
Commission; (k) the United States Attorney’s Office for the District of Delaware;; and (l) any
party that is entitled to notice pursuant to Local Rule 9013-1(m). As this Motion is seeking “first-
day” relief, the Debtors will serve copies of this Motion and any order entered in respect of this
Motion as required by Local Rule 9013-1(m). The Debtors believe that no further notice is
required.
No Prior Request
21.
No previous request for the relief sought herein has been made by the
Debtors to this or any other court.

[Remainder of page intentionally left blank]
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WHEREFORE the Debtors respectfully request entry of the Proposed Order granting the
relief requested herein and such other and further relief as the Court may deem just and appropriate.

Dated: October 3, 2022
Wilmington, Delaware

/s/ Zachary I. Shapiro
RICHARDS, LAYTON & FINGER, P.A.
Daniel J. DeFranceschi (No. 2732)
Amanda R. Steele (No. 5530)
Zachary I. Shapiro (No. 5103)
Matthew P. Milana (No. 6681)
One Rodney Square
920 North King Street
Wilmington, Delaware 19801
Telephone: (302) 651-7700
E-mail: defranceschi@rlf.com
steele@rlf.com
shapiro@rlf.com
milana@rlf.com

-and-

WEIL, GOTSHAL & MANGES LLP
Ray C. Schrock, P.C. (pro hac vice admission pending)
Candace M. Arthur (pro hac vice admission pending)
Natasha S. Hwangpo (pro hac vice admission pending)
Chase A. Bentley (pro hac vice admission pending)
767 Fifth Avenue
New York, New York 10153
Telephone:
(212) 310-8000
E-mail:
ray.schrock@weil.com
candace.arthur@weil.com

natasha.hwangpo@weil.com
chase.bentley@weil.com

Proposed Attorneys for Debtors
and Debtors in Possession
Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 11 of 18

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Exhibit A

Proposed Order
Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 12 of 18

RLF1 28018180v.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
------------------------------------------------------------ x

In re
:
Chapter 11

KABBAGE, INC. d/b/a KSERVICING, et al., :
Case No. 22-10951 ( )

Debtors.1
:
(Jointly Administered)
------------------------------------------------------------ x

ORDER (I) AUTHORIZING THE DEBTORS TO
(A) FILE AND MAINTAIN CONSOLIDATED CREDITOR LISTS,
AND (B) REDACT CERTAIN PERSONAL IDENTIFICATION
INFORMATION FOR INDIVIDUALS, (II) APPROVING SPECIAL
ELECTRONIC NOTICING PROCEDURES, AND (III) GRANTING RELATED RELIEF
Upon the motion (the “Motion”)2 of Kabbage, Inc. d/b/a KServicing and its debtor
affiliates, as debtors and debtors in possession in the Chapter 11 Cases (collectively,
the “Debtors”), for entry an order (i) authorizing the Debtors to (a) file a single, consolidated list
of creditors, maintain a single, consolidated mailing matrix (the “Creditor Matrix”), and file a
single, consolidated list of the Debtors’ top 30 largest unsecured creditors, in lieu of filing and
maintaining separate creditor lists and mailing matrices for each Debtor; and (b) redact certain
personal identification information for individuals; (ii) approving the manner of notifying
Borrowers of the commencement of these Chapter 11 Cases and the proposed Special Electronic
Noticing Procedures; and (iii) granting related relief, all as more fully set forth in the Motion; and
this Court having jurisdiction to consider the Motion and the relief requested therein pursuant to

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: Kabbage, Inc. d/b/a KServicing (3937); Kabbage Canada Holdings, LLC (N/A); Kabbage
Asset Securitization LLC (N/A); Kabbage Asset Funding 2017-A LLC (4803); Kabbage Asset Funding 2019-A
LLC (8973); and Kabbage Diameter, LLC (N/A). Kabbage is a trademark of American Express used under license;
Kabbage, Inc. d/b/a KServicing is not affiliated with American Express. The Debtors’ mailing and service address
is 925B Peachtree Street NE, Suite 383, Atlanta, GA 30309.
2 Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms
in the Motion.
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28 U.S.C. §§ 157(a)-(b) and 1334(b), and the Amended Standing Order of Reference from the
United States District Court for the District of Delaware, dated February 29, 2012; and
consideration of the Motion and the requested relief being a core proceeding pursuant to 28 U.S.C.
§ 157(b); and venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409; and
due and proper notice of the Motion having been provided; and such notice having been adequate
and appropriate under the circumstances; and it appearing that no other or further notice need be
provided; and this Court having held hearings to consider the relief requested in the Motion on an
interim and, if necessary, final basis (the “Hearings”); and upon the First Day Declaration and the
record of the Hearings, and all of the proceedings had before this Court; and this Court having
determined that the legal and factual bases set forth in the Motion establish just cause for the relief
granted herein; and after due deliberation and sufficient cause appearing therefor,
IT IS HEREBY ORDERED THAT
1.
The Motion is granted to the extent set forth herein.
2.
The requirements of Local Rule 1007-2(a) and Local Rule 2002-1(f)(v) that
separate mailing matrices be submitted for each Debtor are permanently waived, and the Debtors
are authorized to submit a consolidated list of creditors; provided that if either of these Chapter 11
Cases converts to a case under chapter 7 of the Bankruptcy Code, the applicable Debtor shall file
its own creditor mailing matrix.
3.
The Debtors are authorized to submit a consolidated list of their 30 largest
unsecured creditors; provided that if any of these Chapter 11 Cases converts to a case under chapter
7 of the Bankruptcy Code, the applicable Debtor shall file a list of its own top 20 unsecured
creditors.
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4.
The Debtors are authorized to redact the home addresses or email addresses
of individuals from the Creditor Matrix, the Schedules, affidavits or certificates of service and any
other paper filed or to be filed with the Court in these Chapter 11 Cases. The Debtors shall provide
(if requested) an unredacted version of the Creditor Matrix and any other applicable document to
the Debtors’ claims and noticing agent, the U.S. Trustee, any official committee of unsecured
creditors appointed in these Chapter 11 Cases, any subsequently appointed trustee, the Court, and
any party in interest upon reasonable request. Any party in interest that is not provided with an
unredacted version of the applicable document upon request may file a motion with the Court to
obtain such document. Each party receiving an unredacted copy of the Creditor Matrix or other
applicable document disclosing personally identifiable information shall keep such information
confidential unless otherwise required to be disclosed by law or court order.
5.
When serving any notice in these cases on individuals whose personally
identifiable information is redacted pursuant to this Order, the Debtors’ claims and noticing agent
and, where applicable, the Clerk of the Court and any other party in interest, shall use such
individual’s home address.
6.
The Debtors may provide Borrowers with email service in these cases in
keeping with their ordinary business practices, as outlined below, and may continue to offer
Borrowers the option of electing to instead receive notices by first class or other physical mail
delivery if they desire, consistent with the following Special Electronic Noticing Procedures:
 The Debtors will serve the notice of commencement of these Chapter 11 Cases and
the section 341 meeting of creditors (the “Case Commencement Notice”) via
electronic mail on any Borrower with an account that has at least one valid email
address on file in the Debtors’ books and records.
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 To the extent the Debtors do not have an email address on file for a Borrower, or
to the extent the Debtors receive a “bounce-back’ or similar error message in
response to the electronic service of the Case Commencement Notice, the Debtors
will serve the Case Commencement Notice via first-class mail directed to the last
known physical address, if available, maintained in their books and records for such
Borrower.3
 The Debtors will publish the Case Commencement Notice in both the national
editions of The New York Times and USA Today. The Debtors will also publish the
Notice of Commencement on the Debtors’ case management website to be
established by Omni and on the Debtors’ website.
 The Debtors will include with the Case Commencement Notice: (a) information for
accessing the case management website to be established by Omni, where the
recipient can obtain additional information about these cases; and (b) instructions
indicating that all future notices will be provided to the recipient by email, if
available, unless the recipient designates, either in writing or via Omni’s website,
that it wishes to receive physical notices in connection with the Debtors’ cases.
Creditors who do not have an email address on file or who previously elected to
receive physical notices will also be given an opportunity to provide a current email
address and to elect to receive electronic service in connection with these
bankruptcy cases. This information (the “Electronic Noticing Instructions”) will
be provided substantially in the form of the language below:

3 On information and belief, the Debtors lack valid email addresses for, and would consequently send hard copy notice
to, approximately 18,000 Borrowers.
Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 16 of 18

ELECTRONIC SERVICE NOTICE

Kabbage, Inc. d/b/a KServicing
c/o Omni
5955 De Soto Ave., Suite 100
Northland Hills, CA 91367
kservicinginquiries@omniagnt.com

https://omniagentsolutions.com/kservicing
https://omniagentsolutions.com/kservicing-hard-copy-opt-in

ADDITIONAL INFORMATION

7.
The Special Noticing Procedures shall apply only to Borrowers, and, absent
further order of the Court, the Debtors will be required to serve all other parties in interest
(including, but not limited to, governmental entities, non-Borrower creditors, and counsel in any
litigation pending against the Debtors) by first-class mail or such other means as are provided for
pursuant to the Bankruptcy Rules or this Court’s Local Rules.
Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 17 of 18

RLF1 28018180v.1
8.
The Debtors may seek further Court authority by separate motion on notice
to use the Special Electronic Noticing Procedures for the service of notice of the confirmation
hearing of any chapter 11 plan and any service of documents related to the solicitation of a plan.
9.
Notwithstanding entry of this Order, nothing herein shall create, nor is
intended to create, any rights in favor of or enhance the status of any claim held by, any party.
10.
The Debtors are authorized to take all action necessary to effectuate the
relief granted in this Order.
11.
This Court shall retain jurisdiction to hear and determine all matters arising
from or related to the implementation, interpretation, or enforcement of this Order.

Case 22-10951-CTG Doc 5 Filed 10/03/22 Page 18 of 18

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Motion to File Consolidated Creditor List and Redact Personal Identification Information — In re KServicing

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