Third monthly fee application — AlixPartners, LLP — In re KServicing (Bankr. D. Del.)

Record facts

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 496 · 2023-01-30 · Docket on CourtListener

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1 
UNITED STATES BANKRUPTCY COURT 
FOR THE DISTRICT OF DELAWARE 
In re: 
KABBAGE, INC. d/b/a KSERVICING, et. al.,1 
Debtors. 
Chapter 11 
Case No. 22-10951 (CTG) 
(Jointly Administered) 
Hearing Date: Only if objections are filed 
Objections Due:  February 20, 2023 at 4:00 p.m. (ET) 
THIRD MONTHLY APPLICATION OF ALIXPARTNERS, LLP,  
FINANCIAL ADVISOR TO THE CHAPTER 11 DEBTORS, FOR 
ALLOWANCE OF COMPENSATION FOR PROFESSIONAL SERVICES  
RENDERED AND REIMBURSEMENT OF EXPENSES INCURRED 
FOR THE PERIOD FROM DECEMBER 1, 2022 THROUGH DECEMBER 31, 2022 
Name of Applicant: 
ALIXPARTNERS, LLP 
Authorized to provide professional services to 
The Chapter 11 Debtors 
Date of Retention 
October 21, 2022 effective as of  
October 3, 2022 [Docket No. 135] 
Period for which compensation 
and reimbursement is sought  
December 1, 2022 through December 31, 2022 
Amount of compensation sought as actual, 
reasonable and necessary 
$604,901.00 
Amount of payment sought 
$483,920.80 (80% of $604,901.00) 
Amount of expense reimbursement sought as 
actual, reasonable and necessary 
$1,788.77 
This is a(n):       Monthly       Interim       Final application 
The total time expended for fee application preparation is approximately 12.0 hours and the 
corresponding compensation requested is approximately $5,670.00. 
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 496    Filed 01/30/23    Page 1 of 13

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ALIXPARTNERS, LLP 
SUMMARY OF MONTHLY FEE APPLICATIONS 
Requested
Paid
Fees
Expenses
Fees
Expenses
12/02/2022
Docket #323
10/03/2022 -
10/31/2022
731,257.25
$      
5,925.18
$        
585,005.80
$     
5,925.18
$        
12/27/2022
Docket #374
 $    146,251.45 
12/29/2022
Docket #391
11/1/2022 -
11/30/2022
619,173.50
$      
2,406.51
$        
-
$
 
-
$
 
1/20/2023
Docket #475
 $    621,580.01 
01/25/2022
Docket #N/A
12/1/2022 - 
12/31/2022
604,901.00
$      
1,788.77
$        
-
$
 
-
$
 
 $    606,689.77 
1,955,331.75
$ 
10,120.46
$    
585,005.80
$  
5,925.18
$      
 $  767,831.46 
Total
Date Filed;
Docket No.
Period
Certificate of 
No Objection
Amount 
Outstanding
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 2 of 13

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ALIXPARTNERS, LLP 
SUMMARY OF HOURS AND FEES BY PROFESSIONAL  
FROM DECEMBER 1, 2022 THROUGH DECEMBER 31, 2022 
Professional
Title
Rate
Hours
Fees
Deborah Rieger-Paganis
Managing Director
$1,160
46.8
           
 $            54,288.00 
James Nelson
Director
$945
130.0
         
             122,850.00 
Thora B Thoroddsen
Director
$880
130.6
         
             114,928.00 
John M Katsigeorgis
Senior Vice President
$795
161.3
         
             128,233.50 
Heather E Saydah
Senior Vice President
$510
0.4
             
204.00 
Anthony Perrella
Vice President
$555
150.7
         
               83,638.50 
Nicholas LoBiondo
Vice President
$555
177.3
         
               98,401.50 
Lisa Marie Bonito
Vice President
$475
16.9
           
8,027.50 
814.0
         
 $          610,571.00 
               (5,670.00)
 $          604,901.00 
           (120,980.20)
 $          483,920.80 
 $
743.12 
Total Hours and Fees for Professionals
Less: 50% Travel Fees
Total Fees for Professionals
Less: 20% Holdback
Total Fees for Professionals
Average Billing Rate
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 3 of 13

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ALIXPARTNERS, LLP 
SUMMARY OF HOURS AND FEES BY MATTER CATEGORY 
FROM DECEMBER 1, 2022 THROUGH DECEMBER 31, 2022 
Code
Matter Category
Hours
Fees
1.1
Chapter 11 Process / Case Management
59.7  $            51,915.00 
1.3
Cash / Liquidity Matters
177.4              126,144.50 
1.5
U.S. Trustee / Court Reporting Requirements
224.3              149,523.50 
1.6
CFO Support
8.4 
7,730.00 
1.9
Plan & Disclosure Statement
218.1              176,075.00 
1.10
Transaction Support
11.2 
6,443.50 
1.13
Vendor Management
14.3                12,245.50 
1.14
Executory Contracts
12.8                10,971.50 
1.15
Claims Process / Avoidance Actions
51.6                43,991.50 
1.16
Adversary Proceedings & Contested Matters
2.4 
2,526.00 
1.20
Fee Applications & Fee Applications
21.8                11,665.00 
1.31
Travel Time
12.0 
5,670.00 
Total Hours and Fees By Matter Category
814.0  $          604,901.00 
Average Billing Rate  $
743.12 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 4 of 13

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ALIXPARTNERS, LLP 
SUMMARY OF EXPENSES 
FROM DECEMBER 1, 2022 THROUGH DECEMBER 31, 2022 
Expense Category
Amount
Airfare
 $
900.02 
Ground Transportation
283.89 
Lodging
331.69 
Meals
128.22 
Parking & Tolls
95.00 
Phone & Internet
49.95 
Total Expenses
 $
1,788.77 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 5 of 13

1 
UNITED STATES BANKRUPTCY COURT 
FOR THE DISTRICT OF DELAWARE 
In re: 
KABBAGE, INC. d/b/a KSERVICING, et al.,1 
Debtors. 
Chapter 11 
Case No. 22-10951 (CTG) 
(Jointly Administered) 
Hearing Date: Only if objections are filed 
Objections Due: February 20, 2023 at 4:00 p.m. (ET) 
THIRD MONTHLY APPLICATION OF ALIXPARTNERS, LLP, 
FINANCIAL ADVISOR TO THE CHAPTER 11 DEBTORS, FOR 
ALLOWANCE OF COMPENSATION FOR PROFESSIONAL SERVICES 
RENDERED AND FOR REIMBURSEMENT OF EXPENSES INCURRED  
FOR THE PERIOD FROM DECEMBER 1, 2022 THROUGH DECEMBER 31, 2022 
AlixPartners, LLP (“AlixPartners”), as financial advisor to the above-captioned debtors (the 
“Debtors”), hereby submits its third monthly application (the “Application”) for allowance of 
compensation for professional services rendered and reimbursement of out-of-pocket expenses 
incurred for the period from December 1, 2022 through December 31, 2022 (the “Compensation 
Period”).  AlixPartners respectfully states as follows: 
Jurisdiction and Venue 
1.
The United States Bankruptcy Court for the District of Delaware (the “Court”) has
jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334.  This is a core proceeding pursuant 
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 496    Filed 01/30/23    Page 6 of 13

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to 28 U.S.C. § 157(b)(2). 
2.
Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.
Relief Requested 
3.
The bases for the relief requested herein are Sections 330 and 331 of Title 11 of the
United States Bankruptcy Code (the “Bankruptcy Code”), Rule 2016 of the Federal Rules of 
Bankruptcy Procedure (the “Bankruptcy Rules”), Rule 2016-2 of the Local Rules of Bankruptcy 
Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local 
Rules”), the United States Trustee Guidelines for Reviewing Applications for Compensation and 
Reimbursement of Expenses Filed Under 11 U.S.C. § 330, adopted June 11, 2013 (the “U.S. Trustee 
Guidelines”) and the Order Establishing Procedures for Interim Compensation and Reimbursement 
of Expenses of Professionals [Docket No. 136] (the “Interim Compensation Order”). 
Background 
4.
On October 3, 2022 (the “Petition Date”), the Debtors each filed a voluntary petition
for relief under chapter 11 of the Bankruptcy Code, thereby commencing the above-captioned Chapter 
11 Cases (the “Chapter 11 Cases”) in this Court. 
5.
No trustee or examiner has been appointed in these Chapter 11 Cases.
AlixPartners’ Retention 
6.
On October 3, 2022, the Debtors filed their Application of Debtors for Entry of Order
Authorizing Employment and Retention of AlixPartners, LLP as Financial Advisor to the Debtors 
Effective as of the Petition Date [Docket No. 16]. 
7.
On October 21, 2022, the Court entered the Order Authorizing Debtors to Employ and
Retain AlixPartners, LLP as Financial Advisor Effective as of the Petition Date [Docket No. 135] (the 
“Retention Order”).   
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 7 of 13

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8.
AlixPartners is currently holding a retainer in the amount of $476,344.64 (the
“Retainer”).  Pursuant to the Retention Order, the Retainer shall be treated as an evergreen retainer 
and held by AlixPartners as security throughout these Chapter 11 Cases until AlixPartners’ fees and 
expenses are fully paid. 
9.
The Retention Order approved the terms of AlixPartners’ hourly fee and expense
structure set forth in the engagement letter dated April 25, 2022 (the “Engagement Letter”) and 
authorized AlixPartners to be compensated and reimbursed pursuant to section 327 of the Bankruptcy 
Code in accordance with the terms of the Engagement Letter, subject to the procedures set forth in the 
Bankruptcy Code, Bankruptcy Rules, Local Rules, U.S. Trustee Guidelines and the Interim 
Compensation Order, and any other applicable orders of this Court.   
10.
Pursuant to the Engagement Letter, Deborah Rieger-Paganis is the managing director
responsible for this engagement, assisted by a staff of consultants at various levels with a wide range 
of relevant skills and abilities.   
11.
The Interim Compensation Order provides that upon the expiration of the objection
deadline (the “Objection Deadline”), a professional may file a certificate of no objection (a “CNO”) 
with the Court with respect to any professional fees and out-of-pocket expenses not subject to 
objection.  After a professional files a CNO, the Debtors are authorized and directed to pay the 
professional 80% of the fees and 100% of the expenses not subject to an objection that are requested 
in the applicable Monthly Fee Application.  
Fees and Expenses During the Compensation Period 
12.
During the Compensation Period, AlixPartners provided an aggregate of 814.0 hours
of professional services in the amount of $604,901.00 and incurred out-of-pocket expenses in the 
amount of $1,788.77.  After applying a 20% holdback of fees in the amount of $120,980.20, 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 8 of 13

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AlixPartners seeks payment of 80% of fees for services rendered in the amount of $483,920.80 and 
100% of expenses incurred in the amount of $1,788.77, for a total payment of $497,745.31 for the 
Compensation Period. 
13.
Detailed descriptions of the professional services performed by each professional,
organized by matter category and by date, and the aggregate hours of services provided (in tenths of 
an hour) during the Compensation Period are attached hereto as Exhibit A.  
14.
A detailed list of the out-of-pocket expenses incurred during the Compensation Period
are attached hereto as Exhibit B. 
Services By Category Provided During the Compensation Period 
15.
AlixPartners classified the services performed into separate categories.  The
descriptions below summarize the services provided by AlixPartners to the Debtors during the 
Compensation Period.    
Matter Code 1.1:  Chapter 11 Process/Case Management 
59.7 hours - $51,915.00 
This category includes: (i) organizing and managing the Debtors’ resources to effectively 
and efficiently plan, coordinate and manage the Chapter 11 process; (ii) reviewing and 
maintaining dockets and case calendars; and (iii) holding working sessions to keep the 
engagement team informed of the latest case developments, remain aligned on the many 
workstreams, verify that resources are properly allocated to meet deadlines, and ensure all 
matters and issues are addressed in an efficient and timely manner.   
Matter Code 1.3:  Cash/Liquidity Matters 
177.4 hours - $126,144.50 
This category includes: (i) maintaining a rolling weekly cash forecasting model; (ii) 
preparing daily cash balance reporting; (iii) analyzing actual weekly cash receipts and 
disbursements; (iv) negotiating required reporting format and content for the cash collateral 
order; (v) reconciling loan-related receipts to determine Debtors’ portion of borrower and 
SBA collections; (vi) advising management on complying with post-petition cash 
management and cash reporting requirements as defined in the cash management and cash 
collateral orders; (vii) assisting management with reviewing disbursements; and (viii) 
assisting management with information requests related to liquidity, cash reporting, and 
cash forecasting. 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 9 of 13

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Matter Code 1.5:  U.S. Trustee/Court Reporting Requirements   
224.3 hours - $149,523.50 
This category includes: (i) preparing the monthly operating reports; (ii) holding working 
sessions with management and other advisors to keep the remain aligned on the bankruptcy 
process workstreams and verify that resources are properly allocated to meet deadlines; 
(iii) reviewing bankruptcy court filings and coordinate analysis as needed; (iv) attending
Board meetings to present analysis and coordinate on bankruptcy case priorities; and (v)
assisting management with adherence to the requirements of the Court, the U.S. Trustee,
and/or the Bankruptcy Code.
Matter Code 1.6:  CFO Support 
8.4 hours - $7,730.00 
This category includes: (i) reviewing monthly financial statements; and (ii) preparing 
updates to the professional fee forecast. 
Matter Code 1.9:  Plan & Disclosure Statement 
218.1 hours - $176,076.00 
This category includes:  (i) developing the hypothetical liquidation analysis model for best-
interest test; (ii) preparing liquidation analysis exhibits for the disclosure statement; (iii) 
analyzing the value waterfall to various creditor classes under the plan of reorganization 
(iv) preparing the cost-per-loan analysis; and (v) providing edits to the Plan and Disclosure
Statement based on stakeholder comments.
Matter Code 1.10: Transaction Support 
11.2 hours - $6,443.50 
This category includes assisting the Debtors with various transaction and closing-related 
tasks, including researching and responding to inquiries and information requests from 
parties in interest, coordinating and managing closing mechanics, and preparing and 
managing the emergence day funds flow.    
Matter Code 1.13:  Vendor Management 
14.3 hours - $12,245.50 
This category includes assisting the Debtors with vendor management, including 
performing claims analyses, communicating with vendors, negotiating payment terms, and 
developing and customizing numerous vendor payment proposals.   
Matter Code 1.14:  Executory Contracts 
12.8 hours - $10,971.50 
This category includes identifying executory contracts and calculating related cure 
amounts in order to file cure schedules with the Court, resolving cure disputes, and 
analyzing leases and other contracts with respect to assumption and rejection. 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 10 of 13

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Matter Code 1.15:  Claims Process/Avoidance Actions 
51.6 hours - $43,991.50 
This category includes reviewing, analyzing and reconciling filed claims, including 
administrative and priority claims, and assisting Debtors’ counsel in negotiating with 
various claimants. 
Matter Code 1.16:  Adversary Proceedings & Contested Matters 
2.4 hours - $2,526.00 
This category includes preparing reports and analyses, and attending meetings related to 
adversary proceedings and other contested matters.  
Matter Code 1.20:  Fee Statements & Fee Applications 
21.8 hours - $11,665.00 
This category includes managing the fee application process, and preparing and reviewing 
monthly fee applications, including all required supporting documentation, in accordance 
with requirements of the U.S. Trustee and/or the Court. 
Matter Code 1:31:  Travel Time 
12.0 hours - $5,670.00 
This category includes traveling to meetings outside of consultants’ respective “home” 
office region.  Hours billed under this category were billed at 50% of AlixPartners’ 
standard rates. 
16.
AlixPartners believes that the fees and out-of-pocket expenses requested are
reasonable, actual and for necessary services rendered or expenses incurred on behalf of the Debtors 
during the Compensation Period. 
17.
AlixPartners has not entered into any agreement, express or implied, with any other
party for the purpose of fixing or sharing fees or other compensation to be paid for professional 
services rendered in these Chapter 11 Cases.  No promises have been received by AlixPartners or any 
member thereof as to compensation in connection with these Chapter 11 Cases other than in 
accordance with the provisions of the Bankruptcy Code. 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 11 of 13

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Certification 
18.
A Certification of Deborah Rieger-Paganis is attached hereto as Exhibit C and
incorporated herein. 
No Prior Request 
19.
No prior request for the relief sought in this Application has been made to this or any
other Court.  This Application is made without prejudice to further or final applications based upon 
all relevant criteria, including the results achieved in the case as a whole.  
Notice 
20.
Notice of this Application has been or will be provided to those parties entitled to
receive notice hereof in accordance with any applicable order of this Court. 
[Remainder of page intentionally left blank.] 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 12 of 13

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Conclusion 
WHEREFORE, AlixPartners, as financial advisor to the Debtors, respectfully requests:  (i) 
an interim allowance of compensation for professional services in the amount of $604,901.00 and 
reimbursement of out-of-pocket expenses in the amount of $1,788.77 for the Compensation Period; 
(ii) that, upon the expiration of the Objection Deadline and entry of a CNO, the Debtors are authorized
and directed to pay AlixPartners fees in the amount of $483,920.80 (80% of $604,901.00) and 100% 
of out-of-pocket expenses in the amount of $1,788.77, for a total amount of $485,709.57; and (iii) 
such other and further relief as this Court deems proper.   
Dated:  January 30, 2023 
ALIXPARTNERS, LLP 
909 Third Avenue, 28th Floor 
New York, New York 10022 
/s/ Deborah Rieger-Paganis 
By:  Deborah Rieger-Paganis     
        Managing Director 
Case 22-10951-CTG    Doc 496    Filed 01/30/23    Page 13 of 13

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