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Home Court filings In re KServicing Wind Down Corp., et al. Order (Omnibus Claims Reclassification) — In re KServicing

Court filing

Order (Omnibus Claims Reclassification) — In re KServicing

Filed February 17, 2023 in Kservicing Bankruptcy; one of 140 filings from this case.

Record facts

CourtU.S. Bankruptcy Court for the District of Delaware
Filed2023-02-17

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 546 · 2023-02-17 · Docket on CourtListener

Full text

RLF1 28611784V.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. 491 
------------------------------------------------------------ x
 
 
ORDER GRANTING DEBTORS’ FIRST OMNIBUS  
OBJECTION (SUBSTANTIVE) TO CERTAIN MISCLASSIFIED CLAIMS 
 
Upon the Debtors’ First Omnibus Objection (Substantive) to Certain Misclassified 
Claims (the “Objection”)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 section 502 under title 11 of the United States Code (the “Bankruptcy Code”), 
Rule 3007 of the Federal Rules of Bankruptcy Procedures (the “Bankruptcy Rules”), and Rule 
3007-1 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy 
Court for the District of Delaware (the “Local Rules”), (i) reclassifying the Misclassified Priority 
Claims as general unsecured claims, (ii) reclassifying the Misclassified Administrative Expense 
Claims as general unsecured claims, (iii) reclassifying the Misclassified Secured Claims as general 
 
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 Objection. 
Case 22-10951-CTG    Doc 546    Filed 02/17/23    Page 1 of 4

 
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RLF1 28611784V.1 
unsecured claims, and (iv) granting related relief, all as more fully set forth in the Objection; and 
this Court having jurisdiction to consider the Objection 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 upon 
consideration of the Objection and the requested relief being a core proceeding pursuant to 28 
U.S.C. § 157(b); and venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 
1409; and due and proper notice of the Objection 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 a hearing to consider the relief requested in 
the Objection (the “Hearing”), if necessary; and upon the record of the Hearing; and this Court 
having determined that the legal and factual bases set forth in the Objection establish just cause 
for the relief granted herein; and it appearing that the relief requested in the Objection is in the best 
interests of the Debtors, their estates, creditors, and all parties in interest; and upon all of the 
proceedings had before the Court and after due deliberation and sufficient cause appearing 
therefor, 
IT IS HEREBY ORDERED THAT: 
1. 
The Objection is granted to the extent set forth herein. 
2. 
Each proof of claim listed under the heading “Misclassified Priority 
Claims” on Schedule 1 annexed hereto is hereby reclassified as set forth on Schedule 1 under the 
column “Modified Classification Status”. 
3. 
Each proof of claim listed under the heading “Misclassified Administrative 
Expense Claims” on Schedule 2 annexed hereto is hereby reclassified as set forth on Schedule 2 
under the column “Modified Classification Status”. 
Case 22-10951-CTG    Doc 546    Filed 02/17/23    Page 2 of 4

 
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RLF1 28611784V.1 
4. 
Each proof of claim listed under the heading “Misclassified Secured 
Claims” on Schedule 3 annexed hereto is hereby reclassified as set forth on Schedule 3 under the 
column “Modified Classification Status”. 
5. 
Any Response to the Objection not otherwise withdrawn, resolved, or 
adjourned is hereby overruled on the merits. 
6. 
The objections by the Debtors to the Misclassified Claims, as addressed in 
the Objection and the schedules hereto, constitute a separate contested matter with respect to each 
such proof of claim, as contemplated by Bankruptcy Rule 9014 and Local Rule 3007-1.  This Order 
shall be deemed a separate Order with respect to each Misclassified Claim. 
7. 
Any stay of this Order pending appeal by any holder of a Misclassified 
Claim or any other party with an interest in such claims that are subject to this Order shall only 
apply to the contested matter which involves such party and shall not act to stay the applicability 
and/or finality of this Order with respect to the other contested matters arising from the Objection 
or this Order. 
8. 
This Order has no res judicata, estoppel, or other effect on the validity, 
allowance, or disallowance of any claim referenced and/or identified in the Objection that is not 
listed on Schedule 1, Schedule 2, or Schedule 3 annexed hereto as a Misclassified Priority Claim, 
Misclassified Administrative Expense Claim, and a Misclassified Secured Claim, respectively, and 
all rights to object or defend against such claims on any basis are expressly reserved. 
9. 
The rights of the Debtors, or any other party in interest, as applicable, to (a) 
file subsequent objections to any of the Misclassified Claims on any and all substantive and/or 
non-substantive grounds; (b) amend, modify, and/or supplement the Objection, including, without 
limitation, the filing of objections to further amended or newly filed Claims; (c) seek expungement 
Case 22-10951-CTG    Doc 546    Filed 02/17/23    Page 3 of 4

 
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RLF1 28611784V.1 
or reduction of any claim to the extent all or a portion of such claim has been paid; and (d) settle 
any claim for less than the asserted amount are preserved. 
10. 
The Debtors and Omni Agent Solutions are authorized to modify the Claims 
Register to comport with the entry of this Order. 
11. 
Nothing contained in the Objection or this Order, nor any payment made 
pursuant to the authority granted by this Order, is intended to be or shall be construed as (a) an 
admission as to the validity of any claim against the Debtors; (b) an agreement or obligation to pay 
any claims; (c) a waiver of the Debtors’ or any appropriate party in interest’s rights to dispute the 
amount of, basis for, or validity of any claim against the Debtors, including but not limited to, any 
future objections on substantive and/or non-substantive grounds; (d) a waiver of any claim or cause 
of action which may exist against any creditor or interest holder; or (e) an approval, assumption, 
adoption, or rejection of any agreement, contract, lease, program, or policy between the Debtors 
and any third party under section 365 of the Bankruptcy Code. 
12. 
Notwithstanding entry of this 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. 
13. 
The Debtors are authorized to take all action necessary to effectuate the 
relief granted in this Order. 
14. 
The Court shall retain jurisdiction to hear and determine all matters arising 
from or related to the implementation, interpretation, or enforcement of this Order. 
Dated: February 17th, 2023 
Wilmington, Delaware
CRAIG T. GOLDBLATT 
UNITED STATES BANKRUPTCY JUDGE
Case 22-10951-CTG    Doc 546    Filed 02/17/23    Page 4 of 4

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archive.org
  1. Objection to Plan Confirmation by PPP Borrower Plaintiffs — In re KServicing (Bankr. D. Del., 2023-02-21)same case · 2023-02-21
  2. Notice of Claims Satisfied in Full — In re KServicingsame case · 2023-02-21
  3. Plan Supplement (First) — In re KServicingsame docket · 2023-02-21
  4. Schedule of Misclassified Administrative Expense Claims — In re Kabbagesame docket · 2023-02-17
  5. Objection to Motion — In re KServicingsame docket · 2023-02-17
  6. KServicing - Objection to the Juneau Group_s Motion to Compel Payment of a 503(b)(9) Claim As Filedsame docket · 2023-02-17
  7. Schedule of Misclassified Secured Claims — In re Kabbagesame docket · 2023-02-17
  8. Schedule of Misclassified Priority Claims — In re Kabbagesame docket · 2023-02-17
  9. Order Granting Debtors’ First Omnibussame docket · 2023-02-16
  10. Notice of Omnibus Objection and Hearing (Doc. 491-1) — In re Kabbage, Inc. d/b/a KServicing (Bankr. D. Del.)same docket · 2023-02-15
  11. Kabbage - COC re Pietschner Voting Stipulation, Doc. 538-1 — In re KServicing Wind Down Corp., et al.same docket · 2023-02-15
  12. Order Extending Debtors' Exclusive Periods — In re KServicingsame case · 2023-02-15
  13. Order Approving Stipulation — In re KServicingsame case · 2023-02-15
  14. First Interim Fee Application (Weil, Gotshal & Manges LLP) — In re KServicingsame case · 2023-02-14
  15. First Interim Fee Application (Notice) — In re KServicingsame case · 2023-02-14
  16. First Interim Fee Application (Omni Agent Solutions) — In re KServicingsame case · 2023-02-14
  17. Objection to Claims (Voting Disallowance) — In re KServicingsame case · 2023-02-14
  18. Kabbage - COC re Pietschner Voting Stipulation, Doc. 527-1 — In re KServicing Wind Down Corp., et al.same docket · 2023-02-14
  19. Trinity - Objection to Claims for Voting Purposes (Filing Version)same docket · 2023-02-14
  20. In re Kabbage — Rieger-Paganis Certification (AlixPartners First Interim Fee Application)same docket · 2023-02-14

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 · Orders and opinions · 2023 · Court filings

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