Final Order (I) Authorizing Debtors
- Date
- 2022-10-20
Summary
Exhibit A, Doc 126-1, filed October 20, 2022 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), a jointly administered Chapter 11 case in the United States Bankruptcy Court for the District of Delaware. The four-page exhibit sets out a Final Order (I) authorizing the Debtors (A) to pay certain prepetition taxes and assessments and (B) granting related relief, referencing Docket Nos. 9 & 70. The order text grants the motion on a final basis and authorizes, but does not direct, payment of prepetition Taxes and Assessments in an aggregate amount not to exceed $321,500. Its chart lists franchise taxes of $93,500, personal property taxes of $38,500, income taxes of $184,000 and other fees of $5,500. It also authorizes the Debtors' banks to honor related checks and transfers and makes the order effective upon entry notwithstanding Bankruptcy Rule 6004(h).
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Case 22-10951-CTG Doc 126-1 Filed 10/20/22 Page 1 of 4
EXHIBIT A
RLF1 28121334v.1
Case 22-10951-CTG Doc 126-1 Filed 10/20/22 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. :
------------------------------------------------------------ x Re: Docket Nos. 9 & 70
FINAL ORDER (I) AUTHORIZING DEBTORS
(A) TO PAY CERTAIN PREPETITION TAXES
AND ASSESSMENTS AND (B) GRANTING RELATED RELIEF
Upon the motion (the “Motion”),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 (i) authorizing the Debtors to (a) pay certain prepetition Taxes
and Assessments and (b) granting related relief, all as more fully set forth in the Motion; and this
Court having jurisdiction to consider the Motion and the relief requested therein pursuant to 28
U.S.C. §§ 157(a)-(b) and 1334(b), 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 Motion and the requested relief 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 due and proper
notice of the Motion 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
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 respective meanings ascribed to such terms
in the Motion.
Case 22-10951-CTG Doc 126-1 Filed 10/20/22 Page 3 of 4
Court having held hearings to consider the relief requested in the Motion on an interim and, if
necessary, final basis (the “Hearings”); and upon the First Day Declaration and the record of the
Hearings, and all of the proceedings had before this Court; and this Court having determined that
the legal and factual bases set forth in the Motion establish just cause for the relief granted herein;
and after due deliberation and sufficient cause appearing therefor,
IT IS HEREBY ORDERED THAT
1. The Motion is granted on a final basis to the extent set forth herein.
2. The Debtors are authorized, but not directed pursuant to sections 105(a),
363(b), 507(a), and 541(d) of the Bankruptcy Code, to satisfy all Taxes and Assessments due and
owing, in the ordinary course of business as such obligations become due, to the Taxing
Authorities that arose prior to the Petition Date, including all Taxes and Assessments subsequently
determined by audit or otherwise to be owed for periods prior to the Petition Date, in the aggregate
amount not to exceed $321,500, absent further order of this Court. Such Taxes and Assessments
are summarized in further detail in the chart below.
Category
Final
Franchise Taxes $93,500
Personal Property $38,500
Taxes
Income Taxes $184,000
Other Fees $5,500
TOTAL $321,500
3. Each of the Banks at which the Debtors maintain their accounts relating to
the payment of the prepetition Taxes and Assessments are authorized to (a) receive, process, honor,
2
Case 22-10951-CTG Doc 126-1 Filed 10/20/22 Page 4 of 4
and pay all checks presented for payment, and to honor all fund transfer requests made by the
Debtors related thereto, to the extent that sufficient funds are on deposit in those accounts, and
(b) accept and rely on all representations made by the Debtors with respect to which checks, drafts,
wires, or automated clearing house transfers should be honored or dishonored in accordance with
this or any other order of this Court, whether such checks, drafts, wires, or transfers are dated
before, on, or after the Petition Date, without any duty to inquire otherwise.
4. The Debtors are authorized, but not directed, to issue new post-petition
checks, or effect new electronic funds transfers, on account of payment of the prepetition Taxes
and Assessments as set forth herein, and to replace any prepetition checks or electronic fund
transfer requests that may be lost, dishonored, or rejected as a result of the commencement of the
Debtors’ Chapter 11 Cases.
5. Notwithstanding entry of this Final 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.
6. Notice of the Motion is adequate under Bankruptcy Rule 6004(a).
7. Notwithstanding Bankruptcy Rule 6004(h), this Final Order shall be
immediately effective and enforceable upon its entry.
8. The Debtors are authorized to take all action necessary to effectuate the
relief granted in this Final Order.
9. This Court shall retain jurisdiction to hear and determine all matters
arising from or related to the implementation, interpretation, or enforcement of this Final Order.
3
File and source
- File
- gov.uscourts.deb.188293.126.1.pdf
- Size
- 211,935 bytes
- SHA-256
- 2686838d2f13f077b5ce8619280bc17169f1bc76246c5698b95b63a92fc5c901
- Original
- archive.org