Cash Management Bridge Order
- Date
- 2022-10-04
Summary
Doc 40-2, filed October 4, 2022 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), jointly administered Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware, is Exhibit B, a form of Emergency Bridge Order Authorizing Debtors' Postpetition Use of Cash Management System on an Interim Basis Pending a Further Hearing. The order recites that the debtors filed on October 3, 2022 and that a First Day Hearing on the Cash Management Motion [Docket No. 12] is set for October 6, 2022, and that the U.S. Trustee and the Federal Reserve Bank of San Francisco do not oppose the relief. It would authorize the debtors to keep using their cash management system until that hearing and would provide that they will segregate proceeds of the PPPLF Collateral for the sole benefit of the Reserve Bank. The document is four pages and unsigned.
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Full text
Case 22-10951-CTG Doc 40-2 Filed 10/04/22 Page 1 of 4
Exhibit B
Cash Management Bridge Order
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Case 22-10951-CTG Doc 40-2 Filed 10/04/22 Page 2 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)
:
: (Jointly Administered)
1
Debtors. :
: Ref. Docket No. 12
------------------------------------------------------------ x
EMERGENCY BRIDGE ORDER AUTHORIZING DEBTORS’
POSTPETITION USE OF CASH MANAGEMENT SYSTEM ON AN INTERIM
BASIS PENDING A FURTHER HEARING
WHEREAS, 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;
WHEREAS, 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 filed by the Debtors
requesting “first day” relief, including the 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”),
which seeks authorization to, among other things, continue the Debtors’ use of their cash
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.
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Case 22-10951-CTG Doc 40-2 Filed 10/04/22 Page 3 of 4
management system (the “Cash Management System”), as further described in the Cash
Management Motion;
WHEREAS, the Debtors require the ability to continue to use their Cash
Management System in accordance with prepetition practices in order to operate their business
between the Petition Date and the First Day Hearing; and
WHEREAS, the Office of the United States Trustee for the District of Delaware (the
“U.S. Trustee”) and the Federal Reserve Bank of San Francisco (the “Federal Reserve”) do not
oppose the relief granted by this Order.
IT IS HEREBY ORDERED THAT: 2
1. Pending a further hearing on the Cash Management Motion at the First Day
Hearing, the Debtors are authorized to continue to manage their cash pursuant to the Cash
Management System in accordance with the cash management practices sought to be approved as
described more fully in the Cash Management Motion. Each Bank (as defined in the Cash
Management Motion) is authorized, but not directed, to rely on the representations of the Debtors in
this regard and such Bank shall not have any liability to any party for relying on such representations
by the Debtors.
2. Notwithstanding the possible applicability of Rules 6004(h), 7062, and 9014
of the Federal Rules of Bankruptcy Procedure, or otherwise, the terms and conditions of this Order
shall be immediately effective and enforceable upon its entry.
2
All capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Cash
Management Motion.
2
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3. For the avoidance of doubt, the Debtors will segregate all proceeds of the
PPPLF Collateral (as defined in the Cash Management Motion) that the Debtors receive in the
Synovus Servicing Account for the sole benefit of the Reserve Bank.
4. This Order shall remain in effect only until a subsequent form of order related
to the Cash Management Motion is entered and shall be without prejudice to the rights of the U.S.
Trustee, the Federal Reserve, or any other party in interest to object to the relief requested in the
Cash Management Motion.
5. This Court shall retain jurisdiction over all matters arising from or related to
the interpretation or implementation of this Order.
3
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- gov.uscourts.deb.188293.40.2.pdf
- Original
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