Certification of Counsel Regarding Third Interim Cash Management Order — In re KServicing

Record facts

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 261 · 2022-11-18 · Docket on CourtListener

Summary

A certification of counsel filed November 18, 2022 as Doc. 261 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), a jointly administered Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. It recounts the debtors' cash management motion filed October 3, 2022 (Docket No. 12), the interim order entered October 6, 2022 (Docket No. 78) and the second interim order entered November 2, 2022 (Docket No. 195). It states that the debtors and the U.S. Trustee agreed to adjourn the final hearing to January 19, 2023. The debtors submit a proposed Third Interim Order as Exhibit 1, which the certification says the U.S. Trustee and the Federal Reserve Bank of San Francisco do not object to, with a redline against the Second Interim Order as Exhibit 2. It is signed by counsel from Richards, Layton & Finger, P.A. and Weil, Gotshal & Manges LLP.

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Full text

RLF1 28240209v.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) 
 
Re: Docket No. 12, 78 & 195 
------------------------------------------------------------ x 
 
 
CERTIFICATION OF COUNSEL REGARDING THIRD INTERIM ORDER  
(I) AUTHORIZING (A) DEBTORS TO CONTINUE USING EXISTING CASH 
MANAGEMENT SYSTEM, BANK ACCOUNTS, AND BUSINESS FORMS, 
(B) IMPLEMENT CHANGES TO CASH MANAGEMENT IN THE  
ORDINARY COURSE OF BUSINESS; AND (II) GRANTING RELATED RELIEF 
 
The undersigned hereby certifies as follows: 
1. 
On October 3, 2022, Kabbage, Inc. d/b/a KServicing and its debtor 
affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases 
(collectively, the “Debtors”), filed the Motion of Debtors for Entry of Interim and Final Orders 
(I) Authorizing Debtors to (A) Continue Using Existing Cash Management System, Bank Accounts, 
and Business Forms, (B) Implement Changes to Cash Management in the Ordinary Course of 
Business; and (II) Granting Related Relief [Docket No. 12] (the “Motion”) with the United States 
Bankruptcy Court for the District of Delaware (the “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.  
Case 22-10951-CTG    Doc 261    Filed 11/18/22    Page 1 of 4

 
2 
RLF1 28240209v.1 
2. 
On October 6, 2022, the Court entered the Interim Order (I) Authorizing (A) 
Debtors to Continue Using Existing Cash Management System, Bank Accounts, and Business 
Forms, (B) Implement Changes to Cash Management in the Ordinary Course of Business; and (II) 
Granting Related Relief [Docket No. 78] (the “Interim Order”). 
3. 
Pursuant to the Interim Order and Notice of (A) Entry of Interim Order 
(I) Authorizing (A) Debtors to Continue Using Existing Cash Management System, Bank Accounts, 
and Business Forms, (B) Implement Changes to Cash Management in the Ordinary Course of 
Business; and (II) Granting Related Relief; and (B) Final Hearing Thereon [Docket No. 84], 
objections or responses to the final relief requested in the Motion, if any, were required to be made 
in writing and filed with the Court on or before October 31, 2022, at 4:00 p.m. (Prevailing Eastern 
Time) (the “Objection Deadline”) (as such deadline may be extended by the Debtors), and a 
hearing to consider the Motion on a final basis was scheduled for November 7, 2022, at 1:00 p.m. 
(Prevailing Eastern Time) (the “Hearing”). 
4. 
Prior to the Objection Deadline, the Debtors received certain informal 
comments to the final relief requested in the Motion from the Office of the United States Trustee 
for the District of Delaware (the “U.S. Trustee”). 
5. 
On November 2, 2022, the Court entered the Second Interim Order 
(I) Authorizing (A) Debtors to Continue Using Existing Cash Management System, Bank Accounts, 
and Business Forms, (B) Implement Changes to Cash Management in the Ordinary Course of 
Business; and (II) Granting Related Relief [Docket No. 195] (the “Second Interim Order”), and 
pursuant to the Second Interim Order, the Hearing was adjourned to November 21, 2022, at 1:00 
p.m. (Prevailing Eastern Time). 
Case 22-10951-CTG    Doc 261    Filed 11/18/22    Page 2 of 4

 
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RLF1 28240209v.1 
6. 
Upon further agreement between the Debtors and the U.S. Trustee 
(collectively, the “Parties”), the Parties have agreed to further adjourn the Hearing to January 19, 
2023 at 10:00 a.m. (Prevailing Eastern Time). 
7. 
Accordingly, the Debtors hereby submit a proposed form of order granting 
the relief requested in the Motion on a further interim basis, attached hereto as Exhibit 1 (the 
“Third Interim Order”).  The Third Interim Order has been circulated to the U.S. Trustee and 
the Federal Reserve Bank of San Francisco, and the aforementioned parties do not object to the 
entry of the Third Interim Order.  For the convenience of the Court and all parties in interest, a 
redline comparison of the Third Interim Order marked against the Second Interim Order is attached 
hereto as Exhibit 2. 
 
[Remainder of page intentionally left blank] 
 
Case 22-10951-CTG    Doc 261    Filed 11/18/22    Page 3 of 4

 
4 
RLF1 28240209v.1 
WHEREFORE the Debtors respectfully request that the Third Interim Order be 
entered at the earliest convenience of the Court. 
Dated: November 18, 2022 
Wilmington, Delaware 
 
/s/ Matthew P. Milana 
RICHARDS, LAYTON & FINGER, P.A. 
Daniel J. DeFranceschi, Esq. (No. 2732) 
Amanda R. Steele, Esq. (No. 5530) 
Zachary I. Shapiro, Esq. (No. 5103) 
Matthew P. Milana, Esq. (No. 6681) 
One Rodney Square 
920 North King Street 
Wilmington, Delaware 19801 
Telephone: (302) 651-7700 
E-mail: defranceschi@rlf.com 
       steele@rlf.com 
       shapiro@rlf.com 
       milana@rlf.com 
 
-and- 
 
WEIL, GOTSHAL & MANGES LLP 
Ray C. Schrock, P.C. (admitted pro hac vice) 
Candace M. Arthur, Esq. (admitted pro hac vice) 
Natasha S. Hwangpo, Esq. (admitted pro hac vice) 
Chase A. Bentley, Esq. (admitted pro hac vice) 
767 Fifth Avenue 
New York, New York 10153 
Telephone:  (212) 310-8000 
E-mail:  
ray.schrock@weil.com 
 
 
candace.arthur@weil.com 
 
 
natasha.hwangpo@weil.com 
 
 
chase.bentley@weil.com 
 
Attorneys for Debtors and Debtors in Possession 
 
Case 22-10951-CTG    Doc 261    Filed 11/18/22    Page 4 of 4

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