Court filing
Certification of Counsel Regarding (I) Order… — In re KServicing Wind Down Corp., et al. (f/k/a Kabbage, Inc.… (Dkt. 40)
Summary
A certification of counsel filed October 4, 2022 as Doc 40 by the debtors in In re Kabbage, Inc. d/b/a KServicing, et al., Chapter 11 Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware. It states that the debtors commenced chapter 11 cases on October 3, 2022 and that a First Day Hearing was scheduled for October 6, 2022. The debtors ask the court to enter, before that hearing, an order under Fed. R. Bankr. P. 1015(b) directing joint administration (Exhibit A) and an emergency bridge order authorizing interim use of their Cash Management System (Exhibit B). The filing states that the Office of the United States Trustee and the Federal Reserve Bank of San Francisco do not oppose the relief. It is signed by Richards, Layton & Finger, P.A. and Weil, Gotshal & Manges LLP as proposed attorneys for the debtors.
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No. 22-10951 · Doc. 40 · Docket on CourtListener
Full text
Case 22-10951-CTG Doc 40 Filed 10/04/22 Page 1 of 4
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)
:
1
Debtors. : (Joint Administration Requested)
:
: Ref. Docket Nos. 3 & 12
------------------------------------------------------------ x
CERTIFICATION OF COUNSEL REGARDING (I) ORDER PURSUANT TO
FED. R. BANKR. P. 1015(b) DIRECTING JOINT ADMINISTRATION OF RELATED
CHAPTER 11 CASES AND (II) EMERGENCY BRIDGE ORDER AUTHORIZING
DEBTORS’ POSTPETITION USE OF CASH MANAGEMENT SYSTEM ON AN
INTERIM BASIS PENDING A FURTHER HEARING
The undersigned hereby certifies as follows:
1. On October 3, 2022 (the “Petition Date”), Kabbage, Inc. d/b/a KServicing
and its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11
cases (collectively, the “Debtors”), commenced with the Court voluntary cases under chapter 11
of title 11 of the United States Code.
2. The Court has scheduled a hearing on October 6, 2022 at 9:30 a.m. (Eastern
Time) (the “First Day Hearing”), to consider various motions for relief filed by the Debtors
requesting “first day” relief, including, among other motions, the following:
Motion of Debtors for Entry of Order Directing Joint Administration of
Related Chapter 11 Cases [Docket No. 3] (the “Joint Administration
Motion”); and
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.
RLF1 28019377v.1
Case 22-10951-CTG Doc 40 Filed 10/04/22 Page 2 of 4
Motion of Debtors for Entry of Interim and Final Orders (I) Authorizing
Debtors to (A) Continue Using Existing Cash Management System, Bank
Accounts, and Business Forms, (B) Implement Changes to Cash
Management in the Ordinary Course of Business; and (II) Granting Related
Relief [Docket No. 12] (the “Cash Management Motion”).
3. The Debtors request that, prior to the First Day Hearing, the Court enter the
order (the “Joint Administration Order”), attached hereto as Exhibit A, granting the relief
requested in the Joint Administration Motion, including, among other things, consolidating the
above-captioned chapter 11 cases for procedural purposes only.
4. Further, in order to operate their business between the Petition Date and the
First Day Hearing, the Debtors require the ability to continue to manage their cash pursuant to the
Cash Management System (as defined in the Cash Management Motion) in accordance with the
cash management practices sought to be approved as described more fully in the Cash
Management Motion. To that end, the Debtors have prepared an emergency bridge order, a copy
of which is attached hereto as Exhibit B (the “Cash Management Bridge Order”), authorizing
the Debtors to use the Cash Management System on an interim basis, as more fully described in
the Cash Management Motion, to the limited extent set forth in the Cash Management Bridge
Order. The Debtors will seek approval of the Cash Management Motion on an interim basis at the
First Day Hearing.
5. As described more fully in the First Day Declaration (as defined in the Cash
Management Motion), the Debtors are a financial services company. Accordingly, absent entry of
the Cash Management Bridge Order, the Debtors are unable to manage their cash pursuant to the
Cash Management System and may suffer immediate and irreparable harm to their operations to
the detriment and prejudice of all parties in interest.
2
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Case 22-10951-CTG Doc 40 Filed 10/04/22 Page 3 of 4
6. The Office of the United States Trustee for the District of Delaware and the
Federal Reserve Bank of San Francisco each do not oppose the relief granted by the Joint
Administration Order and the Bridge Order.
WHEREFORE, the Debtors respectfully request entry of the (i) Joint
Administration Order and (ii) the Bridge Order and such other and further relief as the Court may
deem just and appropriate.
3
RLF1 28019377v.1
Case 22-10951-CTG Doc 40 Filed 10/04/22 Page 4 of 4
Dated: October 4, 2022
Wilmington, Delaware
/s/ Matthew P. Milana
RICHARDS, LAYTON & FINGER, P.A.
Daniel J. DeFranceschi (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, P.C. (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
Proposed Attorneys for Debtors
and Debtors in Possession
4
RLF1 28019377v.1
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