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Interim order — payment of prepetition taxes and assessments — In re KServicing

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. 70 · 2022-10-06 · Docket on CourtListener

Summary

An interim order entered October 6, 2022 in the jointly administered Chapter 11 cases of Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware, docketed as Doc 70. Signed by United States Bankruptcy Judge Craig T. Goldblatt, it grants on an interim basis the debtors' motion (Docket No. 9) and authorizes, but does not direct, payment of prepetition Taxes and Assessments in an aggregate amount not to exceed $67,000, all of it listed as income taxes. It authorizes the debtors' banks to honor related checks and transfers and permits replacement checks. The order sets a final hearing for October 26, 2022, with objections due by October 19, 2022. It is four pages.

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 28023744v.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. 9 
------------------------------------------------------------ x 
 
 
INTERIM ORDER (I) AUTHORIZING DEBTORS  
(A) TO PAY CERTAIN PREPETITION TAXES AND  
ASSESSMENTS AND (B) 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 (i) authorizing the Debtors to (a) pay certain prepetition Taxes 
and Assessments and (b) 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 28 
U.S.C. §§ 157(a)–(b) and 1334(b), and the Amended Standing Order of Reference entered by 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 
                                                 
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 70    Filed 10/06/22    Page 1 of 4

2 
 
RLF1 28023744v.1 
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), 
363(b), 507(a), and 541(d) of the Bankruptcy Code, to satisfy all Taxes and Assessments due and 
owing, in the ordinary course of business as such obligations become due, to the Taxing 
Authorities that arose prior to the Petition Date, including all Taxes and Assessments subsequently 
determined by audit or otherwise to be owed for periods prior to the Petition Date, in an aggregate 
amount not to exceed $67,000, absent further order of this Court.  Such Taxes and Assessments 
are summarized in further detail in the chart below.  
Category 
Interim 
Franchise Taxes 
$0 
Personal Property 
Taxes 
$0 
Income Taxes 
$67,000 
Other Fees 
$0 
Case 22-10951-CTG    Doc 70    Filed 10/06/22    Page 2 of 4

3 
 
RLF1 28023744v.1 
Category 
Interim 
TOTAL 
$67,000 
3. 
Each of the Banks at which the Debtors maintain their accounts relating to 
the payment of the prepetition Taxes and Assessments 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 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. 
4. 
The Debtors are authorized, but not directed, to issue new post-petition 
checks, or effect new electronic funds transfers, on account of payment of the prepetition Taxes 
and Assessments as set forth herein, and to replace any prepetition checks or electronic fund 
transfer requests that may be lost or dishonored or rejected as a result of the commencement of the 
Debtors’ Chapter 11 Cases.  
5. 
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. 
6. 
The requirements of Bankruptcy Rule 6003(b) have been satisfied. 
7. 
Under the circumstances of these Chapter 11 Cases, notice of the Motion is 
adequate under Bankruptcy Rule 6004(a). 
8. 
Notwithstanding the provisions of Bankruptcy Rule 6004(h), this Interim 
Order shall be immediately effective and enforceable upon its entry.   
Case 22-10951-CTG    Doc 70    Filed 10/06/22    Page 3 of 4

4 
 
RLF1 28023744v.1 
9. 
The Debtors are authorized to take all action necessary to effectuate the 
relief granted in this Interim Order. 
10. 
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. 
11. 
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 
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 70    Filed 10/06/22    Page 4 of 4

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archive.org
  1. Application to Retain and Employ Weil, Gotshal & Manges LLP as Debtors' Counsel — In re KServicingsame case · 2022-10-04
  2. Retention Application — Richards, Layton & Finger, P.A. as Co-Counsel — In re KServicingsame case · 2022-10-04
  3. Order Directing Joint Administration of Related Chapter 11 Cases — In re KServicingsame case · 2022-10-04
  4. Application to Retain Omni Agent Solutions as Administrative Agent — In re KServicingsame case · 2022-10-04
  5. Application to Retain Weil, Gotshal & Manges as Attorneys — In re Kabbage, Inc.same docket · 2022-10-05
  6. Kabbage - Notice of Revised Interim Cash Management Order, Doc. 62-1 — In re KServicing Wind Down Corp., et al.same docket · 2022-10-05
  7. Interim Order — Continue Servicing and Subservicing Activities — In re KServicingsame docket · 2022-10-06
  8. Interim order — continuation of insurance policies — In re KServicing (Bankr. D. Del., 2022-10-06, 2)same docket · 2022-10-06
  9. Interim order — stock transfer restrictions (NOL protection) — In re KServicingsame docket · 2022-10-06
  10. Interim order — payment of prepetition employee wages and benefits — In re KServicingsame docket · 2022-10-06
  11. Interim order — adequate assurance for utility providers — In re KServicing (Bankr. D. Del., 2022-10-06, 3)same docket · 2022-10-06
  12. Interim order — cash management system and bank accounts — In re KServicing (Bankr. D. Del., 2022-10-06, 1)same docket · 2022-10-06
  13. Order appointing claims and noticing agent (Omni Agent Solutions) — In re KServicingsame docket · 2022-10-06
  14. Order — consolidated creditor lists and special electronic noticing procedures for PPP borrowers — In re KServicingsame docket · 2022-10-06
  15. Motion of Debtors for Entry of Interimsame docket · 2022-10-06
  16. Motion Of Debt, Doc. 84-1 — In re KServicing Wind Down Corp., et al.same docket · 2022-10-06
  17. First Day Hearing Transcript — In re KServicing (Bankr. D. Del.)same case · 2022-10-07
  18. Motion — Bar Dates for Proofs of Claim — In re KServicingsame case · 2022-10-11
  19. Motion — Interim Compensation Procedures for Retained Professionals — In re KServicingsame case · 2022-10-11
  20. Application to Employ Jones Day as Special Counsel — In re KServicing (Bankr. D. Del.)same case · 2022-10-14

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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