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Periodic Report (Official Form 426) — In re KServicing

Summary

An Official Form 426 Periodic Report as of 3/31/2023, filed May 3, 2023 as Doc 802 by debtor Kabbage, Inc. d/b/a KServicing in Case No. 22-10951 (Jointly Administered) in the U.S. Bankruptcy Court for the District of Delaware, as required by Bankruptcy Rule 2015.3. It reports that the debtor holds a 100% interest in one Controlled Non-Debtor Entity, Kabbage Financial Services LTD. Exhibit A states that the entity's financial statements are unaudited and do not conform to GAAP. Exhibit B states that the entity was established to provide online lending to small businesses in the UK, that this lending ceased in 2015, and that the entity was dissolved on March 7, 2023. Exhibits C, D and E report no intercompany claims, no tax allocations and no payments of debtor expenses by the entity. The 11-page report is signed by an authorized individual on 05/03/2023.

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No. 22-10951 · Doc. 802 · Docket on CourtListener

Full text

                                 Case 22-10951-CTG                Doc 802        Filed 05/03/23         Page 1 of 11
Fill in this information to identify the case:

Debtor Name KABBAGE, INC. d/b/a      KSERVICING
            _____________________________________________

United States Bankruptcy Court for the: District of   Delaware
                                                       (State)

Case number: __22-10951 (Jointly Administered)___




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 3/31/2023
                                              __________ 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 #

                 Kabbage Financial Services LTD                                             100%




             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.




Official Form 426                Periodic Report About Controlled Non-Debtor Entities’ Value, Operations, and Profitability       page 1
                          Case 22-10951-CTG                         Doc 802         Filed 05/03/23       Page 2 of 11

Debtor Name    KABBAGE, INC. d/b/a     KSERVICING
              _______________________________________________________                        Case        22-10951 (Jointly Administered)
                                                                                                  number_____________________________________




           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



                                          /s/ Tamica Williams
           For non-individual
           Debtors:                         _____________________________________________
                                            Signature of Authorized Individual
                                             Tamica Williams
                                            _____________________________________________
                                            Printed name of Authorized Individual

                                            Date 05/03/2023
                                                   MM / DD      / YYYY

           For individual Debtors:
                                           ___________________________________________               ____________________________________________
                                            Signature of Debtor 1                                      Signature of Debtor 2

                                            _______________________________________                    ____________________________________________
                                            Printed name of Debtor 1                                   Printed name of Debtor 2

                                            Date _______________                                       Date _______________
                                                   MM / DD      / YYYY                                        MM / DD       / YYYY




Official Form 426               Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability             page 2
                           Case 22-10951-CTG                  Doc 802          Filed 05/03/23           Page 3 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit A: Financial Statements for Kabbage Financial Services LTD



          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.




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 3
                           Case 22-10951-CTG                  Doc 802          Filed 05/03/23           Page 4 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit A-1: Balance Sheet for Kabbage Financial Services LTD as of 3/31/2023




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 4
                           Case 22-10951-CTG                  Doc 802          Filed 05/03/23           Page 5 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit A-2: Statement of Income (Loss) for Kabbage Financial Services LTD for period ending 3/31/2023




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 5
                           Case 22-10951-CTG                  Doc 802          Filed 05/03/23           Page 6 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit A-3: Statement of Cash Flows for Kabbage Financial Services LTD for period ending 3/31/2023




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 6
                           Case 22-10951-CTG                  Doc 802          Filed 05/03/23           Page 7 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit A-4: Statement of Changes in Shareholders’/Partners’ Equity ( Deficit) for Kabbage Financial Services LTD
              for period ending 3/31/2023




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 7
                            Case 22-10951-CTG                 Doc 802          Filed 05/03/23           Page 8 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              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.

              The entity was dissolved on March 7, 2023.




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 8
                            Case 22-10951-CTG                 Doc 802          Filed 05/03/23           Page 9 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              Exhibit C: Description of Intercompany Claims


              No intercompany claims exist.




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 9
                            Case 22-10951-CTG                 Doc 802          Filed 05/03/23           Page 10 of 11

Debtor Name         KABBAGE, INC. d/b/a     KSERVICING
                _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                  number_____________________________________




              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.




Official Form 426               Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 10
                           Case 22-10951-CTG                 Doc 802          Filed 05/03/23           Page 11 of 11

Debtor Name        KABBAGE, INC. d/b/a     KSERVICING
               _______________________________________________________                      Case           22-10951  (Jointly Administered)
                                                                                                 number_____________________________________




              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.




Official Form 426              Periodic Report About Controlled Non-Debtor Entity’s Value, Operations, and Profitability           page 11


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