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Home Court filings In re KServicing Wind Down Corp., et al. Interim order — continuation of insurance policies — In re KServicing (Bankr. D. Del., 2022-10-06, 2)

Court filing

Interim order — continuation of insurance policies — In re KServicing (Bankr. D. Del., 2022-10-06, 2)

Filed October 6, 2022 in Kservicing Bankruptcy; one of 140 filings from this case.

Record facts

CourtU.S. Bankruptcy Court for the District of Delaware
Filed2022-10-06

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 72 · 2022-10-06 · Docket on CourtListener

Full text

RLF1 28023367v.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 (CTG) 
 
: 
 
 
: 
 
 
 
Debtors.1 
: 
: 
: 
(Jointly Administered) 
 
Ref. Docket No. 7 
------------------------------------------------------------ x 
 
INTERIM ORDER  
(I) AUTHORIZING DEBTORS TO (A) CONTINUE  
INSURANCE POLICIES, AND (B) PAY ALL OBLIGATIONS  
WITH RESPECT THERETO, AND (II) 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 of an order pursuant to sections 105(a), 362(d), and 363(b) of the 
Bankruptcy Code and Bankruptcy Rules 4001, 6003, and 6004 (i) authorizing the Debtors (a) 
to continue all Insurance Policies, and (b) to pay any prepetition obligations arising under the 
Insurance Policies, and (ii) granting related relief, and this Court having jurisdiction to consider 
the Motion and the relief requested therein pursuant to 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 
                                                 
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. 
Case 22-10951-CTG    Doc 72    Filed 10/06/22    Page 1 of 4

 
2 
 
RLF1 28023367V.1 
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 a hearing to 
consider the interim relief requested in the Motion (the “Hearing”); and upon the First Day 
Declaration and the record of the Hearing; 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 it 
appearing that the relief requested in the Motion is necessary to avoid immediate and irreparable 
harm to the Debtors and their estates as contemplated by Rule 6003 of the Federal Rules of 
Bankruptcy Procedure, and after due deliberation and sufficient cause appearing therefor, 
IT IS HEREBY ORDERED THAT 
1. 
The Motion is granted on an interim basis to the extent set forth herein. 
2. 
The Debtors are authorized, but not directed, pursuant to sections 105(a), 
362(d), and 363(b) of the Bankruptcy Code, to continue the Insurance Policies and to perform their 
obligations with respect thereto. 
3. 
The Debtors are further authorized, but not directed, to revise, extend, 
renew, rollover, replace, or obtain new Insurance Policies, and to take all appropriate actions in 
connection therewith, in the ordinary course of business. 
4. 
Notwithstanding anything to the contrary in this Interim Order, payments 
on account of prepetition Insurance Obligations shall not exceed $25,000.00 in the aggregate 
without further order of this Court. 
5. 
The Debtors are authorized, but not directed, to issue new postpetition 
checks, or effect new electronic funds transfers, on account of Insurance Obligations and Brokers’ 
Fees as set forth herein, and to replace any prepetition checks or electronic fund transfer requests 
Case 22-10951-CTG    Doc 72    Filed 10/06/22    Page 2 of 4

 
3 
 
RLF1 28023367V.1 
that may be lost or dishonored or rejected as a result of the commencement of the Debtors’ Chapter 
11 Cases. 
6. 
Each of the Banks at which the Debtors maintain their accounts relating to 
the payment of the obligations described in the Motion are authorized to (a) receive, process, 
honor, and pay all checks presented for payment, and to honor all fund transfer requests made by 
the Debtors related thereto, to the extent that sufficient funds are on deposit in those accounts, and 
(b) accept and rely on all representations made by the Debtors with respect to which checks, drafts, 
wires, or automated clearing house transfers should be honored or dishonored in accordance with 
this or any other order of this Court, whether such checks, drafts, wires, or transfers are dated 
before, on, or after the Petition Date, without any duty to inquire otherwise. 
7. 
Notwithstanding entry of this Interim 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. 
8. 
The requirements of Bankruptcy Rule 6003(b) have been satisfied. 
9. 
Under the circumstances of these Chapter 11 Cases, notice of the Motion is 
adequate under Bankruptcy Rule 6004(a). 
10. 
Notwithstanding Bankruptcy Rule 6004(h), this Interim Order shall be 
immediately effective and enforceable upon its entry. 
11. 
The Debtors are authorized to take all action necessary to effectuate the 
relief granted in this Interim Order. 
12. 
This Court shall retain jurisdiction to hear and determine all matters arising 
from or related to the implementation, interpretation, or enforcement of this Interim Order. 
13. 
The final hearing to consider the relief requested in the Motion shall be held 
on October 26, 2022 at 10:30 a.m. (Prevailing Eastern Time), and any objections or responses to 
Case 22-10951-CTG    Doc 72    Filed 10/06/22    Page 3 of 4

 
4 
 
RLF1 28023367V.1 
the Motion shall be in writing, filed with the Court, and served on or prior to October 19, 2022 at 
4:00 p.m. (Prevailing Eastern Time). 
Dated: October 6th, 2022 
Wilmington, Delaware
CRAIG T. GOLDBLATT 
UNITED STATES BANKRUPTCY JUDGE
Case 22-10951-CTG    Doc 72    Filed 10/06/22    Page 4 of 4

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archive.org
  1. Motion — Bar Dates for Proofs of Claim — In re KServicingsame case · 2022-10-11
  2. First Day Hearing Transcript — In re KServicing (Bankr. D. Del.)same case · 2022-10-07
  3. Interim order — payment of prepetition taxes and assessments — In re KServicingsame docket · 2022-10-06
  4. Interim order — payment of prepetition employee wages and benefits — In re KServicingsame docket · 2022-10-06
  5. Interim Order — Continue Servicing and Subservicing Activities — In re KServicingsame docket · 2022-10-06
  6. Interim order — cash management system and bank accounts — In re KServicing (Bankr. D. Del., 2022-10-06, 1)same docket · 2022-10-06
  7. Interim order — stock transfer restrictions (NOL protection) — In re KServicingsame docket · 2022-10-06
  8. Interim order — adequate assurance for utility providers — In re KServicing (Bankr. D. Del., 2022-10-06, 3)same docket · 2022-10-06
  9. Order appointing claims and noticing agent (Omni Agent Solutions) — In re KServicingsame docket · 2022-10-06
  10. Order — consolidated creditor lists and special electronic noticing procedures for PPP borrowers — In re KServicingsame case · 2022-10-06
  11. Motion of Debtors for Entry of Interimsame docket · 2022-10-06
  12. Application to Retain Weil, Gotshal & Manges as Attorneys — In re Kabbage, Inc.same docket · 2022-10-05
  13. Kabbage - Notice of Revised Interim Cash Management Order, Doc. 62-1 — In re KServicing Wind Down Corp., et al.same docket · 2022-10-05
  14. Application to Retain AlixPartners as Financial Advisor — In re Kabbage, Inc. (KServicing)same docket · 2022-10-05
  15. Application to Retain Omni Agent Solutions as Administrative Agent — In re Kabbage, Inc.same docket · 2022-10-05
  16. Application to Retain and Employ Weil, Gotshal & Manges LLP as Debtors' Counsel — In re KServicingsame case · 2022-10-04
  17. Retention Application — Richards, Layton & Finger, P.A. as Co-Counsel — In re KServicingsame case · 2022-10-04
  18. Order Directing Joint Administration of Related Chapter 11 Cases — In re KServicingsame case · 2022-10-04
  19. Application to Retain Omni Agent Solutions as Administrative Agent — In re KServicingsame case · 2022-10-04
  20. First-Day Declaration of Deborah Rieger-Paganis in Support of Chapter 11 Petitions — In re KServicingsame case · 2022-10-04

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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