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RLF1 28027442v.1
EXHIBIT A
Application
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 1 of 35
RLF1 28018302v.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
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:
In re
:
Chapter 11
:
KABBAGE, INC. d/b/a KSERVICING, et al., :
Case No. 22-10951 ( )
:
:
Debtors.1
:
(Joint Administration Requested)
:
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APPLICATION OF DEBTORS PURSUANT TO
11 U.S.C. § 327(a) AND FED. R. BANKR. P. 2014(a) AND 2016 FOR
AUTHORITY TO RETAIN AND EMPLOY OMNI AGENT SOLUTIONS, INC.
AS ADMINISTRATIVE AGENT EFFECTIVE AS OF 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”), respectfully
represent as follows in support of this application (the “Application”):2
Relief Requested
1.
By this Application, the Debtors request, pursuant to section 327(a) of title
11 of the United States Code (the “Bankruptcy Code”), Rules 2014(a) and 2016 of the Federal
Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), and Rules 2014-1 and 2016-2 of the
Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the
District of Delaware (the “Local Rules”), entry of an order (i) authorizing, but not directing, the
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 respective meanings ascribed to such terms in the First
Day Declaration.
Docket No. 17
Filed: 10/4/22
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Debtors to employ and retain Omni Agent Solutions, Inc. (“Omni”) as administrative agent
(“Administrative Agent”) in these chapter 11 cases, effective as of the Petition Date (as defined
below), in accordance with the terms set forth in the Engagement Agreement, dated September 16,
2022 (the “Engagement Agreement”), annexed hereto as Exhibit A; and (ii) granting related
relief.
2.
A proposed form of order granting the relief requested herein is annexed
hereto as Exhibit C (the “Proposed Order”).
3.
On
October
3,
2022,
the
Debtors’
filed
an
application
(the “Section 156(c) Application”) for an order appointing Omni as claims and noticing agent in
these chapter 11 cases pursuant to 28 U.S.C. § 156(c). The Debtors believe that administration of
these chapter 11 cases will require Omni to perform duties outside the scope approved in the
Section 156(c) Application. Accordingly, the Debtors submit this Application to enable Omni to
provide such additional services.
4.
In support of this Application, the Debtors submit the Declaration of Paul
H. Deutch (the “Deutch Declaration”), a copy of which is annexed hereto as Exhibit B.
Jurisdiction and Venue
5.
The Court has jurisdiction to consider this matter pursuant to
28 U.S.C. §§ 157 and 1334, and the Amended Standing Order of Reference from the United States
District Court for the District of Delaware, dated February 29, 2012. This is a core proceeding
pursuant to 28 U.S.C. § 157(b). Pursuant to Rule 9013-1(f) of the Local Rules, the Debtors consent
to the entry of a final order by the Court in connection with this Application to the extent it is later
determined that the Court, absent consent of the parties, cannot enter final orders or judgments
consistent with Article III of the United States Constitution. Venue is proper before the Court
pursuant to 28 U.S.C. §§ 1408 and 1409.
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Background
6.
On October 3, 2022 (the “Petition Date”), the Debtors each commenced
with this Court a voluntary case under chapter 11 of the Bankruptcy Code (the “Chapter 11
Cases”). The Debtors are authorized to continue operating their business and managing their
properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
No trustee, examiner, or statutory committee has been appointed in these Chapter 11 Cases.
7.
The Chapter 11 Cases are being jointly administered for procedural
purposes only pursuant to Rule 1015(b) of the Bankruptcy Rules and Rule 1015-1 of the Local
Rules.
8.
Additional information regarding the Debtors’ business, capital structure,
and the circumstances leading to the commencement of these Chapter 11 Cases is set forth in the
Declaration of Deborah Rieger-Paganis in Support of Debtors’ Chapter 11 Petitions and First
Day Relief, dated October 3, 2022 (the “First Day Declaration”).
Omni’s Qualifications
9.
Omni is one of the country’s leading chapter 11 administrators, with
experience in noticing, claims administration, solicitation, balloting, and the facilitation of other
administrative aspects of chapter 11 cases. Omni has substantial experience in matters of similar
size and complexity and has acted as the official claims and noticing agent and/or administrative
agent in many large bankruptcy cases in this District and other districts nationwide. See, e.g., In
re Gold Standard Baking, LLC, No. 22-10559 (JKS) (Bankr. D. Del. June 23, 2022); In re PWM
Property Management LLC, No. 21-11445 (MFW) (Bankr. D. Del. Dec. 1, 2021); In re Boy Scouts
of America and Delaware BSA, LLC, No. 20-10343 (LSS) (Bankr. D. Del. Apr. 8, 2020); In re
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Lucky’s Market Parent Company, LLC, No. 20-10166 (JTD) (Bank. D. Del. Jan. 28, 2020); In re
SFP Franchise Corporation, No. 20-10134 (JTD) (Bank. D. Del. Jan. 24, 2020).3
Scope of Service
10.
Pursuant to the Engagement Agreement, the Debtors seek to retain Omni to
provide, among other things, the following bankruptcy administration services (the “Services”), if
and to the extent requested:
a.
assist with, among other things, solicitation, balloting, and tabulation of
votes; prepare any related reports, as required in support of confirmation of
a chapter 11 plan, and in connection with such services, process requests for
documents from parties in interest, including, if applicable, brokerage firms,
bank back-offices, and institutional holders;
b.
prepare an official ballot certification and, if necessary, testify in support of
the ballot tabulation results;
c.
assist with the preparation of the Debtors’ schedules of assets and liabilities
and statements of financial affairs and gather data in conjunction therewith;
d.
provide a confidential data room, if requested by the Debtors;
e.
manage and coordinate any distributions pursuant to a chapter 11 plan if
designated as distribution agent under such plan; and
f.
provide such other solicitation, balloting and other administrative services
described in the Engagement Agreement, but not included in the
Section 156(c) Application, as may be requested from time to time by the
Debtors, the Court, or the Office of the Clerk of the Bankruptcy Court.
3 Because of the voluminous nature of the orders cited herein, such orders have not been attached to this application.
Copies of these orders are available upon request to the Debtors’ proposed counsel.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 5 of 35
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Omni’s Compensation
11.
The Debtors respectfully submit that the fees Omni will charge in
connection with its services to the Debtors, as set forth in the Engagement Agreement, are
competitive and comparable to the rates Omni’s competitors charge for similar services. Indeed,
the Debtors conducted a review and competitive comparison of other firms and reviewed the rates
of other firms before selecting Omni as Administrative Agent. The Debtors believe Omni’s rates
are more than reasonable given the quality of Omni’s services and its professionals’ bankruptcy
expertise. Additionally, Omni will seek reimbursement from the Debtors for reasonable expenses
in accordance with the terms of the Engagement Agreement.
12.
Omni intends to apply to the Court for allowance of compensation and
reimbursement of expenses incurred after the Petition Date in connection with the Services it
provides as Administrative Agent pursuant to the Engagement Agreement. Omni will comply
with the applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules,
and any orders entered in these Chapter 11 Cases regarding professional compensation and
reimbursement of expenses.
13.
Additionally, under the terms of the Engagement Agreement, the Debtors
have agreed to indemnify, defend and hold harmless Omni and its members, officers, employees,
representatives, and agents under certain circumstances specified in the Engagement Agreement,
except in circumstances resulting solely from Omni’s gross negligence or willful misconduct or as
otherwise provided in the Engagement Agreement or Proposed Order. The Debtors believe that
such an indemnification obligation is customary, reasonable, and necessary to retain the Services
of an Administrative Agent in these Chapter 11 Cases for the services provided by this Application.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 6 of 35
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No Duplication of Services
14.
The Debtors intend that the services of Omni will complement, and not
duplicate, the services being rendered by other professionals retained in these Chapter 11 Cases.
Omni understands that the Debtors have retained and may retain additional professionals during
the term of the engagement and will work cooperatively with such professionals to integrate any
respective work conducted by the professionals on behalf of the Debtors.
Disinterestedness
15.
Omni has conducted a conflicts analysis to determine whether it has any
relationships with the creditors and parties in interest provided by the Debtors, and, to the best of
the Debtors’ knowledge, information, and belief, and except as disclosed in the Deutch
Declaration, Omni is a “disinterested person” within the meaning of section 101(14) of the
Bankruptcy Code, as required by section 327(a) of the Bankruptcy Code, and does not hold or
represent any interest materially adverse to the Debtors’ estates in connection with any matter on
which it would be employed.
16.
Omni will supplement its disclosure to the Court if any facts or
circumstances are discovered that would require such additional disclosure.
Relief Requested Should Be Granted
17.
Section 327(a) of the Bankruptcy Code provides that a debtor, subject to
Court approval:
may employ one or more attorneys, accountants, appraisers,
auctioneers, or other professional persons, that do not hold or
represent an interest adverse to the estate, and that are disinterested
persons, to represent or assist the [debtor] in carrying out the
[debtor]’s duties under this title.
11 U.S.C. § 327(a).
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 7 of 35
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18.
Bankruptcy Rule 2014(a) requires that an application for retention include:
specific facts showing the necessity for the employment, the name
of the [firm] to be employed, the reasons for the selection, the
professional services to be rendered, any proposed arrangement for
compensation, and, to the best of the applicant’s knowledge, all of
the [firm’s] connections with the debtor, creditors, any other party
in interest, their respective attorneys and accountants, the United
States Trustee, or any person employed in the office of the United
States Trustee.
Fed. R. Bankr. P. 2014.
19.
To help manage administrative tasks with respect to the thousands of
creditors and other parties in interest that are expected to be involved in the Chapter 11 Cases, the
Debtors respectfully request the Court enter an order appointing Omni as the Administrative Agent
in these Chapter 11 Cases pursuant to section 327(a) of the Bankruptcy Code, Bankruptcy Rules
2014 and 2016, and Local Rules 2014-1 and 2016-2.
20.
The Debtors respectfully request that Omni’s retention be made effective as
of the Petition Date so that Omni may be compensated for the services performed prior to approval
of this Application. Omni has provided services to the Debtors in advance of approval of this
Application in anticipation that its retention would be approved effective as of the Petition Date.
The Debtors submit that these circumstances warrant retroactive approval. Further, the Debtors
believe that no party in interest will be prejudiced by the granting of the retroactive effectiveness
of Omni’s employment because Omni has provided, and will continue to provide, valuable services
to the Debtors’ estates in the covered period.
21.
For the reasons set forth herein, the Debtors submit that the relief requested
herein is in the best interests of the Debtors, their estates, creditors, and other parties in interest,
and therefore, should be granted.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 8 of 35
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Notice
22.
Notice of this Application will be provided to (a) the Office of the United
States Trustee for the District of Delaware; (b) the holders of the thirty (30) largest unsecured
claims against the Debtors on a consolidated basis; (c) the Federal Reserve Bank; (d) Customers
Bank; (e) Cross River Bank; (f) the United States Department of Justice; (g) the Federal Trade
Commission; (h) the Small Business Administration; (i) the Internal Revenue Service; (j) the
Securities and Exchange Commission; (k) the United States Attorney’s Office for the District of
Delaware; and (l) any party that has requested notice pursuant to Bankruptcy Rule 2002
(collectively, the “Notice Parties”). The Debtors believe that no further notice is required.
No Prior Request
23.
No previous request for the relief sought herein has been made by the
Debtors to this or any other court.
WHEREFORE the Debtors respectfully request entry of the Proposed Order
granting the relief requested herein and such other and further relief as the Court may deem just
and appropriate.
Dated: October 4, 2022
Atlanta, Georgia
KABBAGE, INC. d/b/a KSERVICING, et al.
(on behalf of itself and each of its affiliated
Debtors)
/s/ Holly Loiseau
Name: Holly Loiseau
Title: General Counsel and Secretary
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 9 of 35
RLF1 28018302v.1
Exhibit A
Engagement Agreement
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 10 of 35
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RLF1 28018302v.1
Exhibit B
Deutch Declaration
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 25 of 35
RLF1 28018302v.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
------------------------------------------------------------ x
:
In re
:
Chapter 11
:
KABBAGE, INC. d/b/a KSERVICING, et al., :
Case No. 22-10951 ( )
:
:
Debtors.1
:
(Joint Administration Requested)
:
------------------------------------------------------------ x
DECLARATION OF PAUL H. DEUTCH IN SUPPORT OF
APPLICATION OF DEBTORS PURSUANT TO 11 U.S.C. § 327(a)
AND FED. R. BANKR. P. 2014 AND 2016 FOR AUTHORITY
TO RETAIN AND EMPLOY OMNI AGENT SOLUTIONS, INC. AS
ADMINISTRATIVE AGENT EFFECTIVE AS OF THE PETITION DATE
I, Paul H. Deutch, under penalty of perjury, declare as follows:
1.
I am the Executive Vice President of Omni Agent Solutions, Inc. (“Omni”),
a chapter 11 administrative services firm, whose offices are located at 5955 DeSoto Avenue,
Woodland Hills, California 91367 and 1120 Avenue of the Americas, 4th Floor, New York, New
York 10036. Except as otherwise noted, I have personal knowledge of the matters set forth herein
and, if called and sworn as a witness, I could and would testify competently thereto.
2.
This declaration (this “Declaration”) is made in support of the Application
of Debtors’ Pursuant to 11 U.S.C. § 327(a) and Fed. R. Bankr. P. 2014(a) and 2016 for Authority
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.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 26 of 35
2
RLF1 28018302v.1
to Retain and Employ Omni Agent Solutions, Inc. as Administrative Agent Effective as of the
Petition Date, which was filed contemporaneously herewith (the “Application”).2
3.
Omni is one of the country’s leading chapter 11 administrators, with
experience in noticing, claims administration, solicitation, balloting, and the facilitation of other
administrative aspects of chapter 11 cases. Omni has substantial experience in matters of similar
size and complexity and has acted as the official claims and noticing agent and/or administrative
agent in many large bankruptcy cases in this District and other districts nationwide. See, e.g., In
re Gold Standard Baking, LLC, No. 22-10559 (JKS) (Bankr. D. Del. June 23, 2022); In re PWM
Property Management LLC, No. 21-11445 (MFW) (Bankr. D. Del. Dec. 1, 2021); In re Boy Scouts
of America and Delaware BSA, LLC, No. 20-10343 (LSS) (Bankr. D. Del. Apr. 8, 2020); In re
Lucky’s Market Parent Company, LLC, No. 20-10166 (JTD) (Bank. D. Del. Jan. 28, 2020); In re
SFP Franchise Corporation, No. 20-10134 (JTD) (Bank. D. Del. Jan. 24, 2020).3.
4.
As Administrative Agent, Omni will perform the Services specified in the
Application and the Engagement Agreement. In performing such services, Omni will charge the
Debtors the rates set forth in the Engagement Agreement, which is attached as Exhibit A to the
Application.
5.
Omni is a “disinterested person” as that term is defined in section 101(14)
of the Bankruptcy Code, in that Omni and its professional personnel:
(a)
Omni is not a creditor, security holder, or insider of the Debtors;
(b)
Omni and its personnel are not and were not, within two years before the
date of the filing of these cases, directors, officers, or employees of the
Debtors; and
2 Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the
Application.
3 Because of the voluminous nature of the orders cited herein, such orders have not been attached to this application.
Copies of these orders are available upon request to the Debtors’ proposed counsel.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 27 of 35
3
RLF1 28018302v.1
(c)
Omni does not have an interest materially adverse to the interests of the
Debtors’ estates or of any class of creditors or equity security holders, by
reason of any direct or indirect relationship to, connection with, or interest
in, the Debtors.
6.
To the best of my knowledge, neither Omni, nor any of its professional
personnel have any relationship with the Debtors that would impair Omni’s ability to serve as
Administrative Agent. The Debtors have many creditors and, accordingly, Omni may have
rendered and may continue to render services to certain of these creditors. However, Omni has
not and will not represent the separate interest of any such creditor in these Chapter 11 Cases.
7.
I caused to be submitted for review by our conflicts system the names of all
known potential parties-in-interest (the “Potential Parties in Interest”) in these Chapter 11 Cases.
The list of Potential Parties in Interest was provided by the Debtors and included, among other
parties, the Debtors, non-Debtor affiliates, current and former directors and officers of the Debtors,
significant stockholders, secured creditors, lenders, the Debtors’ 30 largest unsecured creditors on
a consolidated basis and other parties. The results of the conflict check were compiled and
reviewed by Omni professionals. At this time, and as set forth in further detail herein, Omni is not
aware of any relationship that would present a disqualifying conflict of interest. Should Omni
discover any new relevant facts or relationships bearing on the matters described herein during the
period of its retention, Omni will use reasonable efforts to file promptly a supplemental
declaration.
8.
On October 16, 2019, Omni executed a contract with X-Claim Inc. (“X-
Claim”) whereby Omni agreed to provide X-Claim with publicly available claims register data in
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 28 of 35
4
RLF1 28018302v.1
a downloadable format (the “Agreement”).4 Omni ceased providing services under the Agreement
as of June 8, 2022 and, as confirmed to Omni by X-Claim, the Agreement was terminated as of
June 9, 2022.
9.
Other than the disclosed contract with X-Claim, Omni is not a party to any
agreement where it receives consideration in exchange for transferring information derived from
Omni’s role as an administrative agent in cases in the District of Delaware or elsewhere to non-
client third parties.
10.
To the best of my knowledge and based solely upon information provided
to me by the Debtors, and except as provided herein, neither Omni, nor any employee thereof, has
any materially adverse connection to the Debtors, their creditors or other relevant parties. Omni
may have relationships with certain of the Debtors’ creditors as a vendor or in connection with
cases in which Omni serves or has served in a neutral capacity as noticing, claims, and balloting
agent for another chapter 11 debtor.
11.
Omni has and will continue to represent clients in matters unrelated to these
Chapter 11 Cases. In addition, Omni and its personnel have and will continue to have relationships
personally or in the ordinary course of business with certain vendors, professionals and other
parties in interest that may be involved in the Debtors’ chapter 11 cases in matters unrelated to
these cases. Omni may also provide professional services to entities or persons that may be
creditors or parties in interest in these Chapter 11 Cases, which services do not directly relate to,
or have any direct connection with, these Chapter 11 Cases or the Debtors.
12.
To the best of my knowledge, neither Omni nor any of its partners or
employees hold or represent any interest materially adverse to the Debtors’ estates with respect to
4 The Agreement did not provide for, nor did X-Claim receive, any claims-related information from Omni that was
not also available to the general public on Omni’s case-specific websites.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 29 of 35
5
RLF1 28018302v.1
any matter upon which Omni is to be engaged. Based on the foregoing, I believe that Omni is a
“disinterested person” as that term is defined in section 101(14) of the Bankruptcy Code.
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 3, 2022
New York, New York
/s/ Paul H. Deutch
Paul H. Deutch
Executive Vice President
Omni Agent Solutions Inc.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 30 of 35
RLF1 28018302v.1
Exhibit C
Proposed Order
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 31 of 35
RLF1 28018302v.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
------------------------------------------------------------ x
:
In re
:
Chapter 11
:
KABBAGE, INC. d/b/a KSERVICING, et al., :
Case No. 22-10951 ( )
:
:
Debtors.1
:
(Jointly Administered)
:
------------------------------------------------------------ x
ORDER AUTHORZING DEBTORS
TO EMPLOY AND RETAIN OMNI AGENT SOLUTIONS, INC.
AS ADMINISTRATIVE AGENT EFFECTIVE AS OF THE PETITION DATE
Upon the application (the “Application”)2 of Kabbage Inc. d/b/a KServicing and
its debtor affiliates, as debtors and debtors in possession in the Chapter 11 Cases (collectively,
the “Debtors”), for entry of an order pursuant to section 327(a) of the Bankruptcy Code,
Bankruptcy Rules 2014(a) and 2016, and Local Rules 2014-1 and 2016-2 authorizing the Debtors
to retain and employ Omni as Administrative Agent effective as of the Petition Date, all as more
fully set forth in the Application; and upon consideration of the First Day Declaration; and the
Court having jurisdiction to consider the Application and the relief requested therein pursuant to
28 U.S.C. §§ 157 and 1334, and the Amended Standing Order of Reference from the United States
District Court for the District of Delaware, dated February 29, 2012; and consideration of the
Application and the requested relief being a core proceeding pursuant to 28 U.S.C. § 157(b); 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.
2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the
Application.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 32 of 35
2
RLF1 28018302v.1
venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409; and due and proper
notice of the Application having been provided; and such notice having been adequate and
appropriate under the circumstances; and it appearing that no other or further notice need be
provided; and this Court having reviewed the Application; and upon any hearing held on the
Application; and all objections, if any, to the Application having been withdrawn, resolved, or
overruled; and this Court having determined that the legal and factual bases set forth in the
Application establish just cause for the relief granted herein; and it appearing that the relief
requested in the Application is in the best interests of the Debtors, their estates, creditors, and all
parties in interest; and upon all of the proceedings had before this Court and after due deliberation
and sufficient cause appearing therefor,
IT IS HEREBY ORDERED THAT
1.
The Application is granted to the extent set forth herein.
2.
The Debtors are authorized, but not directed, pursuant to section 327(a) of
the Bankruptcy Code, Bankruptcy Rules 2014(a) and 2016, and Local Rules 2014-1 and 2016-2
to retain and employ Omni as Administrative Agent effective as of the Petition Date under the
terms of the Engagement Agreement, and Omni is authorized and directed to perform the Services,
and all related tasks, all as described in the Application.
3.
Omni is authorized to take such other action to comply with all duties set
forth in the Application.
4.
Omni shall apply to the Court for allowance of compensation and
reimbursement of expenses incurred after the Petition Date in accordance with the applicable
provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and any orders entered
in these cases regarding professional compensation and reimbursement of expenses.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 33 of 35
3
RLF1 28018302v.1
5.
The Debtors shall indemnify Omni under the terms of the Engagement
Agreement, as modified pursuant to this Order, as modified pursuant to this Order. Omni shall not
be entitled to indemnification, contribution, or reimbursement pursuant to the Engagement
Agreement for services other than the Services provided under the Engagement Agreement, unless
such services and the indemnification, contribution or reimbursement therefor are approved by the
Court.
6.
Notwithstanding anything to the contrary in the Engagement Agreement,
the Debtors shall have no obligation to indemnify Omni, or provide contribution or reimbursement
to Omni, for any claim or expense that is either: (i) judicially determined (the determination having
become final) to have arisen from Omni’s gross negligence, willful misconduct or fraud; (ii) for a
contractual dispute in which the Debtors allege the breach of Omni’s contractual obligations if the
Court determines that indemnification, contribution, or reimbursement would not be permissible
pursuant to In re United Artists Theatre Co., 315 F.3d 217 (3d Cir. 2003); or (iii) settled prior to a
judicial determination under (i) or (ii), but determined by this Court, after notice and a hearing, to
be a claim or expense for which Omni should not receive indemnity, contribution, or
reimbursement under the terms of the Engagement Agreement as modified by this Order.
7.
To the extent applicable in the Engagement Agreement, all requests by
Omni for the payment of indemnification shall be made by means of an application to the Court
and shall be subject to review by the Court to ensure that payment of such indemnity conforms to
the terms of the Engagement Agreement and is reasonable under the circumstances of the litigation
or settlement in respect of which indemnity is sought. In no event shall Omni be indemnified in
the case for its own negligence or willful misconduct. All parties in interest shall retain the right
to object to any demand by Omni for indemnification, contribution, or reimbursement.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 34 of 35
4
RLF1 28018302v.1
8.
In the event that Omni seeks reimbursement from the Debtors for attorneys’
fees in connection with the payment of an indemnity claim, the invoices and supporting time
records for the attorneys’ fees and expenses shall be included in Omni’s own applications, both
interim and final, but determined by this Court after notice and a hearing.
9.
The limitation of liability provision contained in the Engagement
Agreement shall have no force and effect during the pendency of these chapter 11 cases.
10.
Notwithstanding any provision to the contrary in the Engagement Agreement,
this Order shall be immediately effective and enforceable upon its entry.
11.
Notwithstanding any term in the Engagement Agreement to the contrary,
this Court shall retain jurisdiction with respect to all matters arising from or related to the
implementation of this Order.
12.
In the event of any inconsistency between the Engagement Agreement, the
Application and this Order, this Order shall govern.
13.
Notwithstanding entry of this Order, nothing herein shall create, nor is
intended to create, any rights in favor of or enhance the status of any claim held by any party.
14.
The Debtors and Omni are authorized to take all actions necessary or
appropriate to effectuate the relief granted in this Order.
15.
This Court shall retain jurisdiction to hear and determine all matters arising
from or related to the implementation, interpretation, or enforcement of this Order.
Case 22-10951-CTG Doc 50-1 Filed 10/05/22 Page 35 of 35