Order on Rule 2004 Motion — In re Kabbage (March 28, 2023)

Summary

An order filed March 28, 2023 as Doc 733 in In re Kabbage, Inc., d/b/a KServicing, et al., Case No. 22-10951 (CTG), a jointly administered Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. It concerns the motion by Customers Bank under Bankruptcy Rule 2004 for production of documents and oral examination, Related Docket No. 608, and recites that the parties reached agreement. The order resolves the motion and directs the Debtors, for themselves and the Wind Down Estates, to complete the transfer to Customers Bank of files related to servicing the Customers Bank PPP Loans no later than April 17, 2023, as described in a Statement of Work provided on March 9, 2023. It limits recourse for any alleged breach to specific performance. The two-page order is signed by United States Bankruptcy Judge Craig T. Goldblatt.

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                   Case 22-10951-CTG        Doc 733     Filed 03/28/23     Page 1 of 2




                        IN THE UNITED STATES BANKRUPTCY COURT
                             FOR THE DISTRICT OF DELAWARE

                                                          Chapter 11
 In re:
                                                          Case No. 22-10951 (CTG)
 KABBAGE, INC., d/b/a KSERVICING, et al.,                 (Jointly Administered)

                    Debtors.                              Related Docket No. 608



          ORDER REGARDING MOTION FOR AN ORDER PURSUANT TO
       BANKRUPTCY RULE 2004 DIRECTING PRODUCTION OF DOCUMENTS
         AND MATERIALS AND APPEARANCE FOR ORAL EXAMINATION

          Upon consideration of the Motion For an Order Pursuant to Bankruptcy Rule 2004

Directing Production of Documents and Materials and Appearance for Oral Examination (the

“Motion”) filed by Customers Bank and any responses filed thereto; and the Court having

jurisdiction to consider the Motion and the relief requested therein in accordance with 28 U.S.C.

§§ 157 and 1334 and the Amended Standing Order of Reference, dated February 29, 2012; and

consideration of the Motion and the relief requested therein 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 sufficient notice of the Motion having been provided under the circumstances and in

accordance with the Bankruptcy Rules and the Local Rules; and the parties having reached

agreement with respect to the relief sought in the Motion; and finding just cause for the relief

granted herein;

          IT IS HEREBY ORDERED THAT:

          1.       The Motion is RESOLVED as set forth herein.

          2.       As promptly as possible, but in no event later than April 17, 2023, the Debtors, on

behalf of themselves and the Wind Down Estates (as defined in the Amended Plan [Docket No.

627]), shall complete the transfer to Customers Bank of the files related to the servicing obligations



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 of the Customers Bank PPP Loans, which obligations shall be satisfied by the transfer to

 Customers Bank of all relevant files as described in “Phase 1” and “Phase 2” of the Statement of

 Work provided by the Debtors to Customers Bank on March 9, 2023, and in each case solely to

 the extent such files are in the possession, custody, or control of the Debtors.

          3.        Notwithstanding the foregoing, with respect to actions, inactions, or delays of third

 parties in connection with the transfer of such files by April 17, 2023, (1) such events shall not

 result in the Debtors or the Wind Down Estates being considered in breach of the obligations set

 forth in this Order, and (2) neither the Debtors nor the Wind Down Estates shall be required to

 incur any out of pocket expenses outside of the ordinary course of business in connection with

 such events. The sole recourse of any alleged breach of the obligations of the Debtors or the Wind

 Down Estates set forth herein shall be expressly limited to specific performance.

          4.        This Court shall retain jurisdiction to interpret and enforce the terms of this Order.




Dated: March 28th, 2023                     CRAIG T. GOLDBLATT
Wilmington, Delaware                        UNITED STATES BANKRUPTCY JUDGE




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