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Home Court filings Kservicing Bankruptcy Periodic Report — Controlled Non-Debtor Entities (Form 426) — In re KServicing

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Periodic Report — Controlled Non-Debtor Entities (Form 426) — In re KServicing

Record facts

CourtU.S. Bankruptcy Court for the District of Delaware
Filed2022-11-03

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 202 · 2022-11-03 · Docket on CourtListener

Summary

An Official Form 426 Periodic Report on controlled non-debtor entities filed November 3, 2022 as Doc. 202 by Kabbage, Inc. d/b/a KServicing in its jointly administered Chapter 11 case, No. 22-10951, in the U.S. Bankruptcy Court for the District of Delaware. The report, as of 9/30/2022, covers one entity, Kabbage Financial Services LTD, 100% owned by the debtor, and is signed by David Walker. Exhibit A presents internally prepared and unaudited statements showing cash and cash equivalents of 928 at 9/30/2022 against 1,146 at 12/31/2021, with no revenue or expenses and a 218 reduction from exchange rate changes. Exhibit B states the entity was set up for online lending to small businesses in the UK, ceased lending in 2015, and is dormant and being dissolved. Exhibits C, D and E report no intercompany claims, tax allocations or payments of debtor expenses.

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Official Form 426 
Periodic Report About Controlled Non-Debtor Entities’ Value, Operations, and Profitability 
page 1 
Official Form 426 
Periodic Report Regarding Value, Operations, and Profitability of Entities 
in Which the Debtor’s Estate Holds a Substantial or Controlling Interest
12/17
This is the Periodic Report as of __________  on the value, operations, and profitability of those entities in which a 
Debtor holds, or two or more Debtors collectively hold, a substantial or controlling interest (a “Controlled Non-Debtor 
Entity”), as required by Bankruptcy Rule 2015.3.  For purposes of this form, “Debtor” shall include the estate of such 
Debtor. 
Kabbage, Inc. d/b/a KServicing holds a substantial or controlling interest in the following entities:
Name of Controlled Non-Debtor Entity 
Interest of the Debtor 
Tab # 
This Periodic Report contains separate reports (Entity Reports) on the value, operations, and profitability of each 
Controlled Non-Debtor Entity.   
Each Entity Report consists of five exhibits. 
Exhibit A contains the most recently available: balance sheet, statement of income (loss), statement of cash flows,
and a statement of changes in shareholders’ or partners’ equity (deficit) for the period covered by the Entity Report,
along with summarized footnotes.
Exhibit B describes the Controlled Non-Debtor Entity’s business operations.
Exhibit C describes claims between the Controlled Non-Debtor Entity and any other Controlled Non-Debtor Entity.
Exhibit D describes how federal, state or local taxes, and any tax attributes, refunds, or other benefits, have been
allocated between or among the Controlled Non-Debtor Entity and any Debtor or any other Controlled Non-Debtor
Entity and includes a copy of each tax sharing or tax allocation agreement to which the Controlled Non-Debtor
Entity is a party with any other Controlled Non-Debtor Entity.
Exhibit E describes any payment, by the Controlled Non-Debtor Entity, of any claims, administrative expenses or
professional fees that have been or could be asserted against any Debtor, or the incurrence of any obligation to make
such payments, together with the reason for the entity’s payment thereof or incurrence of any obligation with
respect thereto.
This Periodic Report must be signed by a representative of the trustee or debtor in possession. 
Debtor Name __________________________________________________________________ 
United States Bankruptcy Court for the:   District of ____________
(State) 
Case number: _________________________ 
Fill in this information to identify the case: 
KABBAGE, INC. d/b/a KSERVICING
Delaware
22-10951 (Jointly Administered)
9/30/2022
Kabbage Financial Services LTD
100%
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 1 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 2
The undersigned, having reviewed the Entity Reports for each Controlled Non-Debtor Entity, and being familiar with the Debtor’s 
financial affairs, verifies under the penalty of perjury that to the best of his or her knowledge, (i) this Periodic Report and the 
attached Entity Reports are complete, accurate, and truthful to the best of his or her knowledge, and (ii) the Debtor did not cause 
the creation of any entity with actual deliberate intent to evade the requirements of Bankruptcy Rule 2015.3
For non-individual 
Debtors: 
_____________________________________________ 
Signature of Authorized Individual 
_____________________________________________ 
Printed name of Authorized Individual 
Date _______________ 
MM /  DD  / YYYY 
For individual Debtors: ___________________________________________ 
Signature of Debtor 1 
_______________________________________ 
Printed name of Debtor 1 
Date _______________ 
MM /  DD  / YYYY
____________________________________________ 
Signature of Debtor 2 
____________________________________________ 
Printed name of Debtor 2 
Date _______________ 
MM /  DD  / YYYY
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
David Walker
11/03/2022
/s/ David Walker
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 2 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 3
Exhibit A: Financial Statements for Kabbage Financial Services LTD
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
The financial statements for the Controlled Non-Debtor Entity in this Exhibit A are unaudited. The financial statements do 
not conform to the requirements for the presentation of financial statements of the United States’ generally accepted 
accounting principles (“GAAP”) and do not include all of the information and disclosures required by GAAP.  Additionally, 
the financial statements are subject to further review and potential adjustment.  
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 3 of 11

9/30/2022
12/31/2021
928
$          
1,146
$       
928
$          
1,146
$       
928
            
1,146
         
Assets
Cash and Cash Equivalents 
Total Assets
Liabilities
Equity
Total Liabilities and Equity
928
$          
1,146
$       
Kabbage Financial Services LTD
Balance Sheets
Internally prepared and unaudited
Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Exhibit A-1: Balance Sheet for Kabbage Financial Services LTD as of 9/30/2022
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
 0
$        
 0
$     
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 4 of 11

For the nine months 
ended 09/30/2022
For the year 
ended 12/31/2021
Total Revenue
-
$
-
$
 
Total Expenses
-
$
-
$
 
Net Income
-
$
-
$
 
Kabbage Financial Services LTD
Income Statements
Internally prepared and unaudited
Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Exhibit A-2: Statement of Income (Loss) for Kabbage Financial Services LTD for period ending 9/30/2022 
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 5 of 11

For the nine months 
ended 09/30/2022
For the year 
ended 12/31/2021
Net Income
-
$
 
-
$
 
Effect of exchange rate changes on cash
(218)
 
(7)
 
Net decrease in cash
(218)
 
(7)
 
Cash, beginning of period
1,146
 
1,153
 
Cash, end of period
928
$
 
1,146
$
 
Kabbage Financial Services LTD
Statement of Cash Flows
Internally prepared and unaudited
Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Exhibit A-3: Statement of Cash Flows for Kabbage Financial Services LTD for period ending 9/30/2022
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 6 of 11

For the nine months 
ended 09/30/2022
For the year 
ended 12/31/2021
Opening Balance
1,146
$
 
1,153
$
Net Income
- 
- 
(218)
 
(7)
 
Effect of exchange rate 
Closing Balance
928
$
 
1,146
$
Kabbage Financial Services LTD
Statement of Changes in Shareholders Equity
Internally prepared and unaudited
Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Exhibit A-4: Statement of Changes in Shareholders’/Partners’ Equity (Deficit) for Kabbage Financial Services LTD
for period ending 9/30/2022
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 7 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 8
Exhibit B: Description of Operations for Controlled Non-Debtors Entities
Kabbage Financial Services LTD is 100% owned by Kabbage, Inc. and was established to provide online lending to 
small businesses in the UK. Kabbage Financial Services LTD used Kabbage, Inc.'s platform, technology, IP, and balance 
sheet to make loans to small businesses in the UK. This lending was ceased in 2015.
Currently this entity is dormant with no operations and is in process of being dissolved.
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 8 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 9
Exhibit C: Description of Intercompany Claims
No intercompany claims exist.
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 9 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 10
Exhibit D: Allocation of Tax Liabilities and Assets
No federal, state, or local taxes, or any tax attributes, refunds, or other benefits, have been allocated between the 
Controlled Non-Debtor Entity and the Debtors.
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 10 of 11

Debtor Name 
_______________________________________________________ 
Case number_____________________________________ 
Official Form 426 
Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability 
page 11
Exhibit E: Description of Controlled Non-Debtor Entity’s payments of Administrative Expenses, or Professional Fees 
otherwise payable by a Debtor
No payments otherwise payable by the Debtors have been paid by the Controlled Non-Debtor Entity.
KABBAGE, INC. d/b/a KSERVICING
22-10951 (Jointly Administered)
Case 22-10951-CTG    Doc 202    Filed 11/03/22    Page 11 of 11

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  1. PLEASE TAKE NOTICE that, pursuant to that certain Final Ordersame docket · 2022-11-02
  2. Notice of Final Ordersame docket · 2022-11-02
  3. PLEASE TAKE NOTICE that, pursuant to that certain Final Ordersame docket · 2022-11-02
  4. OCP Declarationsame docket · 2022-11-02
  5. Second Interim Order — Cash Management System — In re KServicingsame case · 2022-11-02
  6. Order — Retain Jones Day as Special Counsel to Debtors — In re KServicing (Bankr. D. Del.)same case · 2022-11-02
  7. Order — Retain Greenberg Traurig as Special Counsel to Board — In re KServicingsame case · 2022-11-02
  8. Order — Employ Ordinary Course Professionals — In re KServicingsame case · 2022-11-02
  9. Final Order — NOL Stock Transfer Restrictions — In re KServicingsame case · 2022-11-02
  10. Final Order — Prepetition Employee Wages & Benefits — In re KServicing (Bankr. D. Del.)same case · 2022-11-02
  11. PLEASE TAKE NOTICE that, pursuant to that certain Final Ordersame docket · 2022-11-02
  12. Objection — Cross River Bank Opposes Customers Bank Settlement — In re KServicingsame docket · 2022-11-04
  13. Debtors' Reply in Support of Customers Bank Settlement — In re KServicingsame docket · 2022-11-06
  14. Declaration of Laquisha Milner in Support of Customers Bank Settlement — In re KServicing (Bankr. D. Del.)same docket · 2022-11-06
  15. Order Authorizing Use of Cash Collateral and Granting Adequate Protection — In re KServicingsame docket · 2022-11-07
  16. Exhibit - Kservicing Bankruptcy (2022-11-07)same docket · 2022-11-07
  17. In re Kabbage, Inc. d/b/a KServicing — Notice of Motion to Approve Customers Bank Settlementsame docket · 2022-11-07
  18. November 7, 2022 Hearing Transcript — Judge Goldblatt Approves Customers Bank Settlement — In re KServicing Wind Down Corp., et al. (Bankr. D. Del.)same case · 2022-11-08
  19. Certification of Counsel — Revised Order Approving KServicing and Customers Bank Settlement — In re KServicing Wind Down Corp., et al. (Bankr. D. Del.)same case · 2022-11-09
  20. Order Authorizing and Approving Settlement Agreement Between KServicing and Customers Banksame docket · 2022-11-09

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 · Reports and audits · 2022 · Court filings

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