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Certification of Counsel Regarding Revised… — In re KServicing Wind Down Corp., et al. (f/k/a Kabbage, Inc.… (Dkt. 85)

Summary

A Certification of Counsel filed October 6, 2022 as Doc 85 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), the jointly administered Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware. The certification recounts that the debtors filed a motion on October 3, 2022 for interim and final orders authorizing them to continue servicing and subservicing activities (Docket No. 11). It states that the court held a first day hearing on October 6, 2022 and indicated it would approve the proposed order subject to review of revisions agreed with the Department of Justice, which had given informal comments on behalf of the Small Business Administration. A revised proposed order is attached as Exhibit 1 and a redline comparison as Exhibit 2. The three-page filing is signed by counsel at Richards, Layton & Finger, P.A.

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No. 22-10951 · Doc. 85 · Docket on CourtListener

Full text

                   Case 22-10951-CTG              Doc 85       Filed 10/06/22         Page 1 of 3




                               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. 11
------------------------------------------------------------ x
    CERTIFICATION OF COUNSEL REGARDING REVISED PROPOSED INTERIM
         ORDER AUTHORIZING DEBTORS TO (I) CONTINUE SERVICING AND
     SUBSERVICING ACTIVITIES AND (II) PERFORM RELATED OBLIGATIONS

                    The undersigned hereby certifies as follows:

                    1.       On October 3, 2022, 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”), filed the Motion of Debtors for Interim and Final Orders

Authorizing Debtors to (I) Continue Servicing and Subservicing Activities and (II) Perform

Related Obligations [Docket No. 11] (the “Motion”) with the United States Bankruptcy Court for

the District of Delaware (the “Court”).             A proposed form of order granting the relief requested

in the Motion on an interim basis was attached to the Motion as Exhibit A (the “Proposed

Order”).

                    2.       On October 6, 2022, the Court held an initial hearing (the “First Day

Hearing”) to consider, among other things, the relief requested in the Motion.                     Prior to the First


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 28057853v.1
                   Case 22-10951-CTG      Doc 85      Filed 10/06/22     Page 2 of 3




Day Hearing, the Debtors received informal comments from the United States Department of

Justice (the “DOJ”), on behalf of the United States Small Business Administration, to the Proposed

Order.    At the First Day Hearing, the Debtors presented the Proposed Order to the Court, and the

Court indicated that it would approve the Proposed Order, subject to review of the revisions agreed

to between the Debtors and the DOJ.

                   3.   Consistent with the record made at the First Day Hearing and in resolution

of the DOJ’s informal comments to the Proposed Order, the Debtors have prepared a revised form

of Proposed Order (the “Revised Order”), attached hereto as Exhibit 1.        The Revised Order has

been circulated and is acceptable to the DOJ, the Office of the United States Trustee for the District

of Delaware, Federal Reserve Bank of San Francisco, Customers Bank, and Cross River Bank.

For the convenience of the Court and all parties in interest, a redline comparison of the Revised

Order marked against the Proposed Order is attached hereto as Exhibit 2.



                            [Remainder of page intentionally left blank]




                                                  2
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                   Case 22-10951-CTG        Doc 85      Filed 10/06/22   Page 3 of 3




                   WHEREFORE the Debtors respectfully request that the Revised Order be entered

at the earliest convenience of the Court.

 Dated: October 6, 2022
        Wilmington, Delaware

                                            /s/ Matthew P. Milana
                                            RICHARDS, LAYTON & FINGER, P.A.
                                            Daniel J. DeFranceschi, Esq. (No. 2732)
                                            Amanda R. Steele, Esq. (No. 5530)
                                            Zachary I. Shapiro, Esq. (No. 5103)
                                            Matthew P. Milana, Esq. (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, Esq. (admitted pro hac vice)
                                            Natasha S. Hwangpo, Esq. (admitted pro hac vice)
                                            Chase A. Bentley, Esq. (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




                                                    3
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