Court filing
Certification of Counsel — In re KServicing (Dkt. 527, 2023-02-14)
Record facts
| Court | U.S. Bankruptcy Court for the District of Delaware |
|---|---|
| Filed | 2023-02-14 |
U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 527 · 2023-02-14 · Docket on CourtListener
Summary
A certification of counsel filed February 14, 2023 as Doc 527 in the jointly administered Chapter 11 cases of Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware. It concerns a proposed order approving a stipulation between the Debtors and Paul Pietschner disallowing certain claims solely for voting purposes. The certification states that Pietschner filed twelve proofs of claim on November 30, 2022, withdrew six on January 30, 2023, and that the claims relate to a lawsuit in the Eastern District of Texas, Case No. 4:21-cv-110. It says the remaining Subsidiary Claims are in Class 4 and are to be deemed disallowed for voting on the Plan, while rights regarding the KS Claims are reserved. The Debtors ask the court to enter the proposed order attached as Exhibit A.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
RLF1 28594271v.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 Nos. 466, 467 & 470
------------------------------------------------------------ x
CERTIFICATION OF COUNSEL REGARDING ORDER APPROVING
STIPULATION BY AND BETWEEN THE DEBTORS AND PAUL PIETSCHNER
DISALLOWING CERTAIN CLAIMS SOLELY FOR VOTING PURPOSES
The undersigned hereby certifies as follows:
1.
On November 30, 2022, Paul Pietschner (“Pietschner”) filed the following
twelve (12) proofs of claim against the above-captioned debtors (collectively, the “Debtors”):
i.
Claim nos. 955-8 and 955-10 against Kabbage Asset Funding 2019-A
LLC;
ii.
Claim nos. 952-7 and 952-8 against Kabbage Canada Holdings, LLC;
iii.
Claim nos. 953-5 and 953-6 against Kabbage Asset Securitization LLC;
iv.
Claim nos. 954-6 and 954-7 against Kabbage Asset Funding 2017-A LLC;
v.
Claim nos. 956-6 and 956-7 against Kabbage Diameter, LLC; and
vi.
Claim nos. 951-133 and 951-174 against Kabbage, Inc. d/b/a KServicing
(the “KS Claims”).
2.
On January 30, 2023, Pietschner withdrew claim nos. 953-5, 954-6, 956-6, 952-7,
955-8, and 951-133. Claim nos. 955-10, 952-8, 953-6, 954-7, and 956-7 are collectively referred
to as the “Subsidiary Claims”. The KS Claims and the Subsidiary Claims each assert an
unliquidated, contingent general unsecured claim against the applicable Debtor on account of a
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 527 Filed 02/14/23 Page 1 of 3
2
RLF1 28594271v.1
lawsuit filed on behalf of the United States of America by Pietschner in the United States District
Court for the Eastern District of Texas, Sherman Division, Case No. 4:21-cv-110.
3.
On January 19, 2023, the Court entered the Order (I) Approving the Disclosure
Statement of the Debtors, (II) Establishing Solicitation, Voting, and Related Procedures, (III)
Scheduling Confirmation Hearing, (IV) Establishing Notice and Objection Procedures for
Confirmation of Plan, (V) Approving Special Electronic Noticing Procedures, (VI) Approving
Debtors’ Proposed Cure Procedures for Unexpired Leases and Executory Contracts, and (VII)
Granting Related Relief [Docket No. 470] (the “Disclosure Statement Order”)2 approving the
Disclosure Statement, which authorized the Debtors to solicit votes to accept or reject the Plan.
4.
Pursuant to the Plan, the KS Claims and the Subsidiary Claims are in Class 4
under the Plan (General Unsecured Claims).
5.
Pursuant to the Disclosure Statement Order, the Tabulation Procedures authorized
the Debtors “to enter into stipulations or other agreements with the holder of any Claim
agreeing to the amount of a Claim for voting purposes.” Disclosure Statement Order ¶ 28;
Motion ¶ 53(l).
6.
The Debtors and Pietschner have engaged in discussions regarding the Subsidiary
Claims and have agreed that the Subsidiary Claims shall be deemed disallowed, solely for
purposes of voting on the Plan, in accordance with the Disclosure Statement Order and the
terms set forth in the Stipulation By and Between the Debtors and Paul Pietschner Disallowing
Certain Claims Solely for Voting Purposes (the “Stipulation”), a copy of which is attached as
Exhibit 1 to the proposed form of order (the “Proposed Order”) attached hereto as Exhibit A.3
2
Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the
Disclosure Statement Order or the Motion (as defined in the Disclosure Statement Order), as applicable.
3
For the avoidance of doubt, the Stipulation does not address the KS Claims and all parties’ rights regarding such
claims are reserved.
Case 22-10951-CTG Doc 527 Filed 02/14/23 Page 2 of 3
3
RLF1 28594271v.1
WHEREFORE, the Debtors respectfully request that the Court enter the Proposed Order,
substantially in the form attached hereto as Exhibit A, at its earliest convenience.
Dated: February 14, 2023
Wilmington, Delaware
/s/ Matthew P. Milana
RICHARDS, LAYTON & FINGER, P.A.
Daniel J. DeFranceschi, Esq. (No. 2732)
Amanda R. Steele (No. 5530)
Zachary I. Shapiro (No. 5103)
Matthew P. Milana (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 (admitted pro hac vice)
Candace M. Arthur (admitted pro hac vice)
Natasha S. Hwangpo (admitted pro hac vice)
Chase A. Bentley (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
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