Final Order Authorizing Continuation of Insurance Policies — In re KServicing

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U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 132 · 2022-10-21 · Docket on CourtListener

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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) 
 
: 
 
 
: 
(Jointly Administered) 
 
 
Debtors.1 
: 
 
------------------------------------------------------------ x 
Re: Docket Nos. 7 & 72 
 
 
 
FINAL 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), 363(b), and 503(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, 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 
 
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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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 as 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 pay any prepetition 
Insurance Obligations. 
4. 
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. 
5. 
Each of the Banks at which the Debtors maintain their accounts relating to 
the payment of the Insurance Obligations 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 
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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. 
6. 
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 
that may be lost or dishonored or rejected as a result of the commencement of the Chapter 11 
Cases. 
7. 
Notwithstanding entry of this Final 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. 
Notice of the Motion is adequate under Bankruptcy Rule 6004(a). 
9. 
Notwithstanding Bankruptcy Rule 6004(h), this Final Order shall be 
immediately effective and enforceable upon its entry. 
10. 
The Debtors are authorized to take all action necessary to effectuate the 
relief granted in this Final 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 Final Order. 
 
 
Dated: October 21st, 2022 
Wilmington, Delaware
CRAIG T. GOLDBLATT 
UNITED STATES BANKRUPTCY JUDGE
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