Court filing
Order Sustaining Third Omnibus Objection to PPP Borrower Claims — In re KServicing Wind Down
Record facts
| Court | U.S. Bankruptcy Court for the District of Delaware |
|---|---|
| Filed | 2024-11-01 |
U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 1073 · 2024-11-01 · Docket on CourtListener
Summary
An order dated November 1, 2024 by United States Bankruptcy Judge Craig T. Goldblatt in In re: KServicing Wind Down Corp., et al., Chapter 11 Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware, entered as Doc. 1073. It sustains KServicing Wind Down Corporation's third (substantive) omnibus objection to certain proofs of claims filed by PPP borrowers, Docket No. 1053. The order disallows and expunges in their entirety each claim listed on Schedule 1, reserves rights as to claims not on the schedule, treats any response as a separate contested matter under Bankruptcy Rule 9014, and makes the order immediately effective notwithstanding Bankruptcy Rule 6004(h). Schedule 1 lists claimants with claim dates, claim numbers and amounts.
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Full text
Case 22-10951-CTG Doc 1073 Filed 11/01/24 Page 1 of 3 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: Chapter 11 KServicing Wind Down Corp., et al.,1 Case No. 22-10951 (CTG) Post-Confirmation Debtors. (Jointly Administered) Re: Docket No. 1053 ORDER SUSTAINING KSERVICING WIND DOWN CORPORATION’S THIRD (SUBSTANTIVE) OMNIBUS OBJECTION TO CERTAIN PROOFS OF CLAIMS [PPP BORROWER CLAIMS] Upon the third omnibus objection (the “Objection”) of KServicing Wind Down Corporation (“KServicing WD”), for entry of an order (this “Order”) sustaining the Objection and disallowing and expunging in their entirety the Claims set forth in Schedule 1 attached hereto, and this Court having jurisdiction to consider the Objection pursuant to 28 U.S.C. §§ 157 and 1334 and the Amended Standing Order of Reference from the United States District Court for the District of Delaware, dated February 29, 2012; and this Court being able to issue a final order consistent with Article III of the United States Constitution; and venue of these Chapter 11 Cases and the Objection in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and this matter being a core proceeding pursuant to 28 U.S.C. § 157(b); and this Court having found that proper and adequate notice of the on and the relief requested therein has been provided in accordance with the Bankruptcy Rules and the Local Rules, and that, except as otherwise ordered herein, no other or further notice is necessary; and responses (if any) to the Objection having been withdrawn, The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, as applicable are: KServicing Wind Down Corp. (f/k/a Kabbage, Inc. d/b/a KServicing) (3937); KServicing Wind Down Canada Holdings LLC (f/k/a Kabbage Canada Holdings, LLC) (N/A); KServicing Wind Down Asset Securitization LLC (f/k/a Kabbage Asset Securitization LLC) (N/A); KServicing Wind Down Asset Funding 2017-A LLC (f/k/a Kabbage Asset Funding 2017-A LLC) (4803); KServicing Wind Down Asset Funding 2019-A LLC (f/k/a Kabbage Asset Funding 2019-A LLC) (8973); and KServicing Wind Down Diameter LLC (f/k/a Kabbage Diameter, LLC) (N/A). The Debtors’ mailing and service address is 925B Peachtree Street NE, Suite 383, Atlanta, GA 30309. 1 17008511/1 Case 22-10951-CTG Doc 1073 Filed 11/01/24 Page 2 of 3 resolved or overruled on the merits; and a hearing having been held to consider the relief requested in the Objection and upon the record of the hearing and all of the proceedings had before this Court; and this Court having found and determined that the relief set forth in this Order is in the best interests of the Debtors and their estates; and that the legal and factual bases set forth in the Objection establish just cause for the relief granted herein; and after due deliberation and sufficient cause appearing therefore; IT IS HEREBY ORDERED THAT: 1. The Objection is SUSTAINED as set forth herein. 2. Each Claim set forth in Schedule 1 attached hereto is disallowed and expunged in its entirety. 3. This Order has no res judicata, estoppel, or other effect on the validity, allowance, or disallowance of, and all rights to object to or defend on any basis are expressly reserved with respect to any claims referenced or identified in the Objection that is not listed on Schedule 1 attached hereto. 4. KServicing WD’s right to object on any other grounds that KServicing WD discovers is preserved. 5. To the extent a response is filed regarding any claim, each such claim, and the Objection as it pertains to such claim, will constitute a separate contested matter as contemplated by Bankruptcy Rule 9014. This Order will be deemed a separate order with respect to each claim. Any stay of this Order pending appeal by any claimants whose claims are subject to this Order shall only apply to the contested matter that involves such claimant and shall not act to stay the applicability and/or finality of this Order with respect to the other contested matters listed in the Objection or this Order. 2 17008511/1 Case 22-10951-CTG 6. Doc 1073 Filed 11/01/24 Page 3 of 3 KServicing WD is authorized and empowered to execute and deliver such documents, and to take and perform all actions necessary to implement and effectuate the relief granted in this Order. 7. Nothing in this Order or the Objection is intended or shall be construed as a waiver of any of the rights KServicing WD may have to enforce rights of setoff against the claimants. 8. Nothing in the Objection or this Order, nor any actions or payments made by KServicing WD pursuant to this Order, shall be construed as: (a) an admission as to the amount of, basis for, or validity of any claim against KServicing WD under the Bankruptcy Code or other applicable non-bankruptcy law; (b) a waiver of the KServicing WD or any other party in interest’s right to dispute any claim; (c) a promise or requirement to pay any particular claim; (d) an implication or admission that any particular claim is of a type specified or defined in this Order; (e) an admission as to the validity, priority, enforceability, or perfection of any lien on, security interest in, or other encumbrance on property of KServicing WD or the Debtors’ estates; or (f) a waiver of any claims or causes of action which may exist against any entity under the Bankruptcy Code or any other applicable law. 9. This Order is immediately effective and enforceable, notwithstanding the possible applicability of Bankruptcy Rule 6004(h) or otherwise. 10. This Court shall retain jurisdiction with respect to any matters, claims, rights or disputes arising from or related to the Objection or the implementation of this Order. Dated: November 1st, 2024 Wilmington, Delaware CRAIG T. GOLDBLATT UNITED STATES BANKRUPTCY JUDGE 3 17008511/1 Case 22-10951-CTG Doc 1073-1 Filed 11/01/24 Schedule 1 17008511/1 Page 1 of 5 Case 22-10951-CTG Name of Claimant Doc 1073-1 Filed 11/01/24 Page 2 of 5 Claim Date Filed Claim Number Debtor ʹ ͳʹȀʹȀʹͲʹʹ ͻͷͳǦͳͻͳ ̈́ͶǡͲͲͲǤͲͲ ͳͲͲ ͳʹȀȀʹͲʹʹ ͻͷͳǦʹͲͻ ̈́ʹǡʹͷǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͺͶ ̈́ͷǡͷͳǤͲͲ ǡ ͳʹȀͳͲȀʹͲʹʹ ͻͷͳǦʹͳͷ ̈́͵ǡͶͻͲǤͲͲ ͳͳȀʹ͵ȀʹͲʹʹ ͻͷͳǦͶͺ ̈́ǡͷͲͲǤͳͻ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ͵ͺ ̈́ͳ͵ǡͷͲͳǤͶ͵ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͷͻ ̈́ʹǡͳ͵ǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦ ̈́ʹǡͻͺͺǤͲͲ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷͻ ̈́ʹ͵ǡǤͲͲ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳͳͷ ̈́ͻǡͺǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ ̈́ͳͲͲǡͳͳͺǤͷͷ ǡ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͳͳ ̈́ͳͲͲǡͲͲͲǤͲͲ ǡ ͳʹȀͳȀʹͲʹʹ ͻͷͳǦͳͺͻ ̈́ͳͲͲǡͲͲͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷ ̈́ʹͲǡͺ͵͵ǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳ ̈́ͻʹǡͲ͵ͶǤͻ ͳʹȀ͵ͲȀʹͲʹʹ ͻͷͳǦʹʹͶ ̈́͵ǡͳʹͷǤͲͲ ǡ ͳʹȀͷȀʹͲʹʹ ͻͷͳǦʹͲͳ ̈́ǡ͵ͳǤͺʹ ǡ ͳͳȀ͵ȀʹͲʹʹ ͻͷͳǦͷ ̈́ʹͳǡ͵͵ǤͶ ǡ ͳͳȀ͵ȀʹͲʹʹ ͻͷͳǦ ̈́ʹͳǡ͵͵ǤͶ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷͶ ̈́ͶͷǡͲǤͺ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͶͷ ̈́ͶͷǡͲǤͺ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷͳ ̈́ǡͶͲͲǤͲͲ ǡ Ǥ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͶ ̈́ͳʹʹǡʹͳͷǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͺ ̈́ͷǡͶʹǤͲͲ 1 Claim Amount Case 22-10951-CTG Doc 1073-1 Filed 11/01/24 Page 3 of 5 Name of Claimant Claim Date Filed Claim Number Debtor ǡ ͳͳȀͻȀʹͲʹʹ ͻͷͳǦʹʹ ̈́ʹͷǡͲͲͲǤͲͲ ͳͳȀʹͷȀʹͲʹʹ ͻͷͳǦͷͺ ̈́ʹͳǡͳʹͲǤ͵Ͷ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦʹ ̈́ǡͺͻͺǤͲͲ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͲ ̈́ʹǡͶǤͻͲ ǡ ͳȀͳȀʹͲʹ͵ ͻͷͳǦʹ͵Ͳ ǡ ͳʹȀͳͻȀʹͲʹʹ ͻͷͳǦʹͳͻ ̈́ǡͺͺͺǤͻʹ ǡ ͳͳȀͳͺȀʹͲʹʹ ͻͷͳǦͶͳ ̈́͵ǡͶǤͲͲ ƵŝůƚďLJƌĞŶĚĂ͕/ŶĐ ϭϮͬϭͬϮϬϮϮ ϵϱϭͲϭϴϳ <^ĞƌǀŝĐŝŶŐ Ψϭϰ͕ϬϬϬ͘ϬϬ ǡ ͳͳȀʹ͵ȀʹͲʹʹ ͻͷͳǦͶͶ ̈́ʹͲǡͺ͵͵ǤͲͲ ǡ ͳͳȀʹͳȀʹͲʹʹ ͻͷͳǦ͵ ̈́ͳͺǡ͵ͻʹǤͻ͵ ǡ ͳͳȀʹͷȀʹͲʹʹ ͻͷͳǦͷͲ ̈́ͳͳǡͲͲǤͲͲ ǡ ͳͲȀ͵ͳȀʹͲʹʹ ͻͷͳǦͳͺ ̈́ͷǡͷͳͳǤͲͲ ǡǤ ͳʹȀͳȀʹͲʹʹ ͻͷͳǦͳͺͺ ̈́ʹǡͶͺͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ͵ ̈́ͳͻǡͲͲͲǤͲͲ Ǥ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͶͺ ̈́ͷͳǡͲʹǤ͵Ͷ Ǧ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ͵ ̈́ͺǡͷͲͷǤͲͲ Ƭȋ Ȍ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͳ ̈́ͳ͵ǡͳʹʹǤͲͲ ȋ Ȍ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͳ ̈́ʹͶǡʹͲͲǤͲͲ ǡ ͳͳȀ͵ȀʹͲʹʹ ͻͷͳǦ ̈́ʹͳǡ͵͵ǤͶ ǡ Ǥ ͳͳȀͳͺȀʹͲʹʹ ͻͷͳǦ͵Ͷ ̈́ͳͲǡͲͺǤͺ͵ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳͺͷ Ǥ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷͲ ̈́ͷͲǡ͵ͻͺǤͶ͵ ǡ Ǥ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͻ ̈́ͶǡͲͲͲǤͲͲ ǡ ͳͲȀʹͻȀʹͲʹʹ ͻͷͳǦ͵ ̈́͵ǡʹͳǤͲͲ 2 Claim Amount Case 22-10951-CTG Name of Claimant Doc 1073-1 Filed 11/01/24 Page 4 of 5 Claim Date Filed Claim Number Debtor ǡ ͳͲȀʹͻȀʹͲʹʹ ͻͷͳǦͶ ̈́͵ǡʹͳǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ ̈́ͺǡͷͳͳǤͲͲ ǡ ͳͳȀͺȀʹͲʹʹ ͻͷͳǦʹ͵ ̈́ͺͺǤͶͻ ǡ ͳȀʹ͵ȀʹͲʹ͵ ͻͷͳǦʹ͵ͳ ̈́͵ǡͲͲͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷ͵ ̈́ͳǡͲͲǤͲͲ ǡ ͳͳȀͳͻȀʹͲʹʹ ͻͷͳǦ͵ͷ ̈́ʹͲǡͲͲͲǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͻͶ ̈́ͶͲͲǤͲͲ ǡ ͳʹȀͷȀʹͲʹʹ ͻͷͳǦͳͻ ̈́ʹͲͻǡͺͳǤͲͺ ǡ ͳʹȀͷȀʹͲʹʹ ͻͷͳǦʹͲ ̈́ʹͲͻǡͺͳǤͲͺ ǡ ͳʹȀͳͲȀʹͲʹʹ ͻͷͳǦʹͳ ̈́ʹͲͻǡͺͳǤͲͺ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͳͲͶ ̈́ʹͳǡʹʹͷǤͲ͵ ǡ ͳʹȀȀʹͲʹʹ ͻͷͳǦʹͲͷ ̈́͵ǡͲͲǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͺ͵ ̈́ͶǡͲͳǤͲͲ ,ĂƌĞ͕ŚƌŝƐƚŝŶĞ>͘ ϭϭͬϮϵͬϮϬϮϮ ϵϱϭͲϵϯ <^ĞƌǀŝĐŝŶŐ Ψϰ͕ϴϭϴ͘ϳϳ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦʹ ̈́ʹǡͲͳͳǤͲͲ ǤǡȀȀ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͻͺ ̈́ʹͷǡͷǤʹͳ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͶ ̈́ǡʹͳʹǤͲͲ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͷ ̈́ͷǡͻͺʹǤͺͳ ǡ ʹȀͳ͵ȀʹͲʹ͵ ͻͷͳǦʹ͵ͷ ̈́ǡͲͲͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͲ ̈́ͶͲǡ͵ͳʹǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳͳͻ ̈́͵ǡͺͳͳǤͲͲ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦ ̈́ʹǡͷͲͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ ̈́ͳʹͶǡ͵ͲͺǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳͲͳ ̈́ʹǡͲ͵ǤͲͲ 3 Claim Amount Case 22-10951-CTG Doc 1073-1 Filed 11/01/24 Page 5 of 5 Name of Claimant Claim Date Filed Claim Number Debtor ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ͵ͷ ̈́ͳǡͷͲͲǤͲͲ ǡ ͳʹȀͳȀʹͲʹʹ ͻͷͳǦʹʹͳ ̈́ǡͻͷǤͳͳ ǡ ͳȀͳȀʹͲʹ͵ ͻͷͳǦʹʹͻ ̈́ͳʹǡͲͺǤͲͲ ǡ ͳͳȀʹ͵ȀʹͲʹʹ ͻͷͳǦͷ͵ ̈́ʹǡ͵ͲʹǤͷ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͳͲͲ ̈́ʹͳǡͲͻͶǤ͵ ǡ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͻ ̈́ʹʹǡͲ͵ͻǤͲͲ Ǥ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳʹ ̈́ͳǡͷͶǤͲͲ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳͲʹ ̈́͵ǡʹͺʹǤͲͲ ǡ ͳȀͷȀʹͲʹ͵ ͻͷͳǦʹʹ ̈́ʹʹǡͲͲͲǤͲͲ ǡ ͳͳȀʹͺȀʹͲʹʹ ͻͷͳǦͳ ̈́ͳǡͶͷͳǤͲͲ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͷ ̈́ͳ͵ǡ͵ǤͲͲ ǡ ͳʹȀͳȀʹͲʹʹ ͻͷͳǦͳͻͲ ̈́ʹͳǡͲʹʹǤͻ <ŽŬĂŚ͕DĂƌŐĂƌĞƚ ϮͬϭϲͬϮϬϮϯ ϵϱϭͲϮϰϬ <^ĞƌǀŝĐŝŶŐ Ψϰϱ͕ϴϯϱ͘ϬϬ Ȁ͵ͷ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳʹͻ ̈́ͳʹǡͷͲͲǤͲͲ ǡ ͳͳȀͳȀʹͲʹʹ ͻͷͳǦ͵ʹ ǡ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͳͳͲ ̈́͵Ͳǡͺ͵͵ǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳ͵ʹ ̈́ǡͶͶʹǤͺ ǡ ͳͳȀʹͻȀʹͲʹʹ ͻͷͳǦͳʹͷ ̈́ͳͲǡͶͲʹǤͲͲ ǡ ͳȀͻȀʹͲʹ͵ ͻͷͳǦʹʹ ̈́ͶǡͶʹͲǤͲͲ ͳʹȀͳȀʹͲʹʹ ͻͷͳǦͳͺͳ ̈́ͶǡͲͲǤͲͲ ǡ ͳͳȀ͵ͲȀʹͲʹʹ ͻͷͳǦͳͺ ̈́ͶǡͷͲͲǤͲͲ 4 Claim Amount
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