Kabbage - RLF Retention Application
Summary
Declaration of Holly Loiseau, General Counsel of Kabbage, Inc. d/b/a KServicing and its affiliated debtors, filed October 4, 2022 as Exhibit C (Doc 46-3) in the chapter 11 case Case No. 22-10951 (CTG) in the U.S. Bankruptcy Court for the District of Delaware. It supports the debtors' application to retain Richards, Layton & Finger, P.A. as Delaware co-counsel effective as of the petition date, with Weil Gotshal & Manges LLP as lead bankruptcy counsel. Loiseau says the firm was chosen for its chapter 11 experience, its practice before the court and its prepetition work for the debtors. She says its prepetition and postpetition rates are the same, subject to annual firm-wide adjustments, and that a budget and staffing plan for the first interim period is being developed.
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- Date
- 2022-10-04
Cite this document
“Kabbage - RLF Retention Application.”
Original at archive.org, dated 2022-10-04. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-10-04-kservicing-bankruptcy-16ea7fae-1/
, SHA-256 16ea7faef0a1e7fef412a5b1bec68c476868e605baad6504662e192ca7327604.Full text
Case 22-10951-CTG Doc 46-3 Filed 10/04/22 Page 1 of 5
Exhibit C
Loiseau Declaration
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Case 22-10951-CTG Doc 46-3 Filed 10/04/22 Page 2 of 5
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. : (Jointly Administered)
------------------------------------------------------------ x
DECLARATION OF HOLLY LOISEAU IN
SUPPORT OF APPLICATION OF DEBTORS
TO RETAIN AND EMPLOY RICHARDS,
LAYTON & FINGER, P.A. AS CO-COUNSEL TO THE
DEBTORS EFFECTIVE AS OF PETITION DATE
I, Holly Loiseau, pursuant to 28 U.S.C. § 1746, hereby declare that the following
is true and correct to the best of my knowledge, information, and belief:
1. I am the General Counsel (the “General Counsel”) of the above-
captioned debtors and debtors in possession (collectively, the “Debtors”). I submit this
declaration (the “Declaration”) in support of the Application of Debtors to Retain and Employ
Richards, Layton & Finger, P.A. as Co-Counsel to the Debtors Effective as of Petition Date (the
“Application”)2 for authority to retain and employ Richards, Layton & Finger, P.A. (“RL&F”),
as co-counsel for the Debtors effective as of the Petition Date. Except as otherwise noted, all
facts in this Declaration are based on my personal knowledge of the matters set forth herein,
information gathered from my review of relevant documents and information supplied to me by
other members of the Debtors’ personnel and the Debtors’ advisors.
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.
2
Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Application.
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Case 22-10951-CTG Doc 46-3 Filed 10/04/22 Page 3 of 5
SELECTION OF RL&F AS CO-COUNSEL
2. The Debtors seek to retain Weil Gotshal & Manges LLP as their lead
bankruptcy counsel in connection with the Chapter 11 Cases. Upon determining that these
Chapter 11 Cases would be filed in the United States Bankruptcy Court for the District of
Delaware, the Debtors selected RL&F to serve as their Delaware co-counsel. RL&F was
selected because of the firm’s extensive experience and knowledge in the field of debtor’s and
creditor’s rights, business reorganizations and liquidations under chapter 11 of the Bankruptcy
Code, its expertise, experience and knowledge in practicing before this Court, its proximity to
the Court, its ability to respond quickly to emergency hearings and other emergency matters, and
its familiarity with the Debtors and their businesses due to RL&F’s prepetition representation of
the Debtors. As such, the Debtors believe that RL&F is uniquely qualified to represent them in
these Chapter 11 Cases.
RATE STRUCTURE
3. In my capacity as General Counsel, I, and others acting under my
direction, are responsible for assisting the Debtors in supervising outside counsel retained by the
Debtors. In my experience working with other outside law firms on other matters, I believe that
RL&F’s rates are comparable to those of firms similar to RL&F. I, and others acting under my
direction, are also responsible for reviewing the invoices regularly submitted by RL&F, and I
understand that the rates RL&F charged the Debtors in the prepetition period are the same as the
rates RL&F will charge the Debtors in the postpetition period, subject to annual and customary
firm-wide adjustments in the ordinary course of RL&F’s business.
2
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Case 22-10951-CTG Doc 46-3 Filed 10/04/22 Page 4 of 5
COST SUPERVISION
4. RL&F and the Debtors are in the process of developing a prospective
budget and staffing plan for the first interim period in these Chapter 11 Cases. The Debtors
recognize that in large chapter 11 cases such as this, it is possible there may be unforeseen fees
and expenses that will need to be addressed by the Debtors and RL&F. The Debtors also
recognize it is their responsibility to closely monitor the billing practices of RL&F to ensure that
fees and expenses paid by their estates remain consistent with the Debtors’ expectations taking
into account the exigencies of these Chapter 11 Cases. To that end, the Debtors will continue to
review and monitor the regular invoices submitted by RL&F and, together with RL&F,
periodically amend the budget and staffing plans to reflect developments in these cases as
applicable.
5. The Debtors will continue to monitor the fees and expense reimbursement
process during these Chapter 11 Cases and ensure the Debtors are an active participant in that
process. Recognizing that every chapter 11 case is unique, the Debtors, together with RL&F,
will utilize the budgeting process to provide guidance on the period of time involved and the
level of attorneys and professionals who will work on various matters, as well as the projection
of average hourly rates for the attorneys and professionals for such matters.
3
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Case 22-10951-CTG Doc 46-3 Filed 10/04/22 Page 5 of 5
Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing
is true and correct to the best of my information, knowledge, and belief.
Dated: October 4, 2022
Atlanta, Georgia
/s/ Holly Loiseau
Name: Holly Loiseau
Title: General Counsel
4
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