Order — consolidated creditor lists and special electronic noticing procedures for PPP borrowers — In re KServicing

Record facts

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 77 · 2022-10-06 · Docket on CourtListener

Summary

An order entered October 6, 2022 by United States Bankruptcy Judge Craig T. Goldblatt in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware, filed as Doc 77. The order grants the debtors' motion to file a consolidated creditor list and a consolidated list of their 30 largest unsecured creditors, and authorizes redaction of individuals' home addresses or email addresses. It approves Special Electronic Noticing Procedures under which borrowers of PPP Loans or Legacy Loans receive the Case Commencement Notice by email, or by first-class mail where no valid email is on file, with publication in The New York Times and USA Today. A footnote states the debtors lack valid email addresses for approximately 18,000 Borrowers. The procedures do not apply to the named plaintiffs in Case No. 1:22-cv-01249-VMC.

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Full text

RLF1 28057163v.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. 5 
------------------------------------------------------------ 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 current 
and former borrowers of PPP Loans or Legacy Loans (collectively, the “Borrowers”) of the 
commencement of these Chapter 11 Cases and the proposed Special Electronic Noticing 
                                                 
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 or the First Day Declaration. 
Case 22-10951-CTG    Doc 77    Filed 10/06/22    Page 1 of 6

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RLF1 28057163v.1 
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 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 
Case 22-10951-CTG    Doc 77    Filed 10/06/22    Page 2 of 6

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RLF1 28057163v.1 
7 of the Bankruptcy Code, the applicable Debtor shall file a list of its own top 20 unsecured 
creditors.   
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 
Case 22-10951-CTG    Doc 77    Filed 10/06/22    Page 3 of 6

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RLF1 28057163v.1 
electronic mail on any Borrower with an account that has at least one valid email 
address on file in the Debtors’ books and records.   
 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 
                                                 
3 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 28057163v.1 
bankruptcy cases. This information (the “Electronic Noticing Instructions”) will 
be provided substantially in the form of the language below: 
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 
Northland 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. 
 
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.   
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RLF1 28057163v.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 anything in the Motion or this Order to the contrary, the 
Special Electronic Noticing Procedures shall not apply to the named plaintiffs (or their counsel) in 
the putative class action titled Jason Carr, Vicki LeMaster, Edward Ford Services LLC, Carlton 
Morgan¸ 365 Sun LLC and Candice Worthy, individually and on behalf of all others similarly 
situated v. Kabbage, Inc. d/b/a K Servicing,  Case No. 1:22-cv-01249-VMC (N.D. Ga. 2022).  
10. 
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.   
11. 
The Debtors are authorized to take all action necessary to effectuate the 
relief granted in this 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 Order.   
 
 
 
 
Dated: October 6th, 2022 
Wilmington, Delaware
CRAIG T. GOLDBLATT 
UNITED STATES BANKRUPTCY JUDGE
Case 22-10951-CTG    Doc 77    Filed 10/06/22    Page 6 of 6

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