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Home Court filings Kservicing Bankruptcy Emergency Bridge Order — Postpetition Use of Cash Management System — In re KServicing

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Emergency Bridge Order — Postpetition Use of Cash Management System — In re KServicing

Record facts

CourtU.S. Bankruptcy Court for the District of Delaware
Filed2022-10-04

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 43 · 2022-10-04 · Docket on CourtListener

Summary

An emergency bridge order entered October 4, 2022 as Doc 43 in the jointly administered Chapter 11 cases of Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the United States Bankruptcy Court for the District of Delaware. It authorizes the Debtors to keep managing cash under their existing cash management system on an interim basis, pending a further hearing on the Cash Management Motion at the First Day Hearing set for October 6, 2022. It recites that the debtors commenced voluntary chapter 11 cases on October 3, 2022 and that the United States Trustee and the Federal Reserve Bank of San Francisco do not oppose. It provides that the order is immediately effective notwithstanding Rules 6004(h), 7062, and 9014 of the Federal Rules of Bankruptcy Procedure and that the Debtors will segregate PPPLF Collateral proceeds in the Synovus Servicing Account for the Reserve Bank.

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Full text

RLF1 28023377v.1
UNITED STATES BANKRUPTCY COURT 
DISTRICT OF DELAWARE 
------------------------------------------------------------ x 
In re 
: 
:
KABBAGE, INC. d/b/a KSERVICING, et al., 
: 
:
 
:
Debtors.1 
:
: 
Chapter 11 
Case No. 22-10951 (CTG) 
(Jointly Administered) 
Ref. Docket No. 12
------------------------------------------------------------ x 
EMERGENCY BRIDGE ORDER AUTHORIZING DEBTORS’  
POSTPETITION USE OF CASH MANAGEMENT SYSTEM ON AN INTERIM  
BASIS PENDING A FURTHER HEARING 
WHEREAS, on October 3, 2022 (the “Petition Date”), 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”), commenced with the Court voluntary cases under 
chapter 11 of title 11 of the United States Code; 
WHEREAS, the Court has scheduled a hearing on October 6, 2022 at 9:30 a.m. 
(Eastern Time) (the “First Day Hearing”) to consider various motions filed by the Debtors 
requesting “first day” relief, including the Motion of Debtors for Entry of Interim and Final Orders 
(I) Authorizing Debtors to (A) Continue Using Existing Cash Management System, Bank Accounts,
and Business Forms, (B) Implement Changes to Cash Management in the Ordinary Course of 
Business; and (II) Granting Related Relief [Docket No. 12] (the “Cash Management Motion”), 
which seeks authorization to, among other things, continue the Debtors’ use of their cash 
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. 
Case 22-10951-CTG    Doc 43    Filed 10/04/22    Page 1 of 3

 
2 
 
RLF1 28023377v.1 
management system (the “Cash Management System”), as further described in the Cash 
Management Motion;   
 
WHEREAS, the Debtors require the ability to continue to use their Cash 
Management System in accordance with prepetition practices in order to operate their business 
between the Petition Date and the First Day Hearing; and 
 
WHEREAS, the Office of the United States Trustee for the District of Delaware (the 
“U.S. Trustee”) and the Federal Reserve Bank of San Francisco (the “Federal Reserve”) do not 
oppose the relief granted by this Order. 
IT IS HEREBY ORDERED THAT: 2 
1. 
Pending a further hearing on the Cash Management Motion at the First Day 
Hearing, the Debtors are authorized to continue to manage their cash pursuant to the Cash 
Management System in accordance with the cash management practices sought to be approved as 
described more fully in the Cash Management Motion.  Each Bank (as defined in the Cash 
Management Motion) is authorized, but not directed, to rely on the representations of the Debtors in 
this regard and such Bank shall not have any liability to any party for relying on such representations 
by the Debtors. 
2. 
Notwithstanding the possible applicability of Rules 6004(h), 7062, and 9014 
of the Federal Rules of Bankruptcy Procedure, or otherwise, the terms and conditions of this Order 
shall be immediately effective and enforceable upon its entry. 
                                                 
2 All capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Cash 
Management Motion.  
Case 22-10951-CTG    Doc 43    Filed 10/04/22    Page 2 of 3

 
3 
 
RLF1 28023377v.1 
3. 
For the avoidance of doubt, the Debtors will segregate all proceeds of the 
PPPLF Collateral (as defined in the Cash Management Motion) that the Debtors receive in the 
Synovus Servicing Account for the sole benefit of the Reserve Bank. 
4. 
This Order shall remain in effect only until a subsequent form of order related 
to the Cash Management Motion is entered and shall be without prejudice to the rights of the U.S. 
Trustee, the Federal Reserve, or any other party in interest to object to the relief requested in the 
Cash Management Motion. 
5. 
This Court shall retain jurisdiction over all matters arising from or related to 
the interpretation or implementation of this Order. 
 
 
Dated: October 4th, 2022 
Wilmington, Delaware
CRAIG T. GOLDBLATT 
UNITED STATES BANKRUPTCY JUDGE
Case 22-10951-CTG    Doc 43    Filed 10/04/22    Page 3 of 3

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Our copy
gov.uscourts.deb.188293.43.0.pdf
Original
archive.org
  1. Interim order — cash management system and bank accounts — In re KServicing (Bankr. D. Del., 2022-10-06, 1)same case · 2022-10-06
  2. Interim order — payment of prepetition employee wages and benefits — In re KServicingsame case · 2022-10-06
  3. First-Day Declaration of Deborah Rieger-Paganis in Support of Chapter 11 Petitions — In re KServicingsame docket · 2022-10-04
  4. Application to Retain Richards, Layton & Finger, P.A. as Co-Counsel — In re KServicingsame docket · 2022-10-04
  5. Application to Retain and Employ AlixPartners, LLP as Financial Advisor — In re KServicingsame docket · 2022-10-04
  6. Application to Retain Omni Agent Solutions as Administrative Agent — In re KServicingsame docket · 2022-10-04
  7. Part 2 — KServicing Wind Down Corp. (Dkt. 20.2)same docket · 2022-10-04
  8. Order Directing Joint Administration of Related Chapter 11 Cases — In re KServicingsame docket · 2022-10-04
  9. Part 1 — KServicing Wind Down Corp. (Dkt. 20.1)same docket · 2022-10-04
  10. Retention Application — Richards, Layton & Finger, P.A. as Co-Counsel — In re KServicingsame docket · 2022-10-04
  11. Application to Retain and Employ Weil, Gotshal & Manges LLP as Debtors' Counsel — In re KServicingsame case · 2022-10-04
  12. In re Kabbage, Inc. — Loiseau Declaration Supporting Retention of Weil, Gotshal & Mangessame docket · 2022-10-04
  13. Voluntary Petition for Chapter 11 Bankruptcy — In re KServicing Wind Down (Bankr. D. Del.)same case · 2022-10-03
  14. Motion for Adequate Assurance of Payment to Utility Providers and Related Relief — In re KServicingsame case · 2022-10-03
  15. Motion to Pay Certain Prepetition Taxes and Assessments — In re KServicing (Bankr. D. Del.)same case · 2022-10-03
  16. Application to Appoint Omni Agent Solutions as Claims and Noticing Agent — In re KServicingsame case · 2022-10-03
  17. Motion to Establish NOL Transfer Notification Procedures and Approve Restrictions on Equity Transfers — In re…same case · 2022-10-03
  18. Notice of Weil Gotshal First Monthly Fee Statement — In re Kabbage, Inc. d/b/a KServicing (Bankr. D. Del.)same docket · 2022-10-03
  19. Kabbage - Notice of AlixPartners 1st Monthly Fee Appsame docket · 2022-10-03
  20. In re Kabbage, Inc. — Notice of Omni Agent Solutions First Monthly Fee Statementsame docket · 2022-10-03

Part of: In re KServicing Wind Down Corp., et al. — U.S. Bankruptcy Court, D. Del. · U.S. Bankruptcy Court for the District of Delaware · Paycheck Protection Program (PPP) · Bankruptcies · Orders and opinions · 2022 · Court filings

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