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Final Order

Date
2022-10-20

Summary

Doc 125-1, 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 U.S. Bankruptcy Court for the District of Delaware. Under an Exhibit A cover, it sets out a Final Order authorizing the Debtors to continue their Insurance Policies, pay all obligations with respect to them and granting related relief, referencing Docket Nos. 7 & 72. The order cites sections 105(a), 362(d), 363(b) and 503(b) of the Bankruptcy Code and Bankruptcy Rules 4001, 6003 and 6004. It authorizes, but does not direct, the Debtors to pay prepetition Insurance Obligations and to renew or replace policies in the ordinary course, and authorizes the Banks to honor related checks and transfers. It provides that the order is immediately effective notwithstanding Bankruptcy Rule 6004(h).

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Full text

               Case 22-10951-CTG   Doc 125-1   Filed 10/20/22   Page 1 of 4




                                     EXHIBIT A




RLF1 28121052v.1
                 Case 22-10951-CTG              Doc 125-1        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. 7 & 72

                                  FINAL ORDER
                    (I) AUTHORIZING DEBTORS TO (A) CONTINUE
                INSURANCE POLICIES, AND (B) PAY ALL OBLIGATIONS
             WITH RESPECT THERETO AND (II) 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 pursuant to sections 105(a), 362(d), 363(b), and 503(b) of the

Bankruptcy Code and Bankruptcy Rules 4001, 6003, and 6004 (i) authorizing the Debtors (a) to

continue all Insurance Policies, and (b) to pay any prepetition obligations arising under the

Insurance Policies, and (ii) 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



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 125-1      Filed 10/20/22     Page 3 of 4




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

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 as set forth herein.

                    2.   The Debtors are authorized, but not directed, pursuant to sections 105(a),

362(d), and 363(b) of the Bankruptcy Code, to continue the Insurance Policies and to perform their

obligations with respect thereto.

                    3.   The Debtors are further authorized, but not directed, to pay any prepetition

Insurance Obligations.

                    4.   The Debtors are further authorized, but not directed, to revise, extend,

renew, rollover, replace, or obtain new Insurance Policies, and to take all appropriate actions in

connection therewith, in the ordinary course of business.

                    5.   Each of the Banks at which the Debtors maintain their accounts relating to

the payment of the Insurance Obligations are authorized to (a) receive, process, honor, 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




                                                   2
WEIL 98773054V.12
                Case 22-10951-CTG          Doc 125-1     Filed 10/20/22      Page 4 of 4




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.

                    6.    The Debtors are authorized, but not directed, to issue new postpetition

checks, or effect new electronic funds transfers, on account of Insurance Obligations and Brokers’

Fees as set forth herein, and to replace any prepetition checks or electronic fund transfer requests

that may be lost or dishonored or rejected as a result of the commencement of the Chapter 11

Cases.

                    7.    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.

                    8.    Notice of the Motion is adequate under Bankruptcy Rule 6004(a).

                    9.    Notwithstanding Bankruptcy Rule 6004(h), this Final Order shall be

immediately effective and enforceable upon its entry.

                    10.   The Debtors are authorized to take all action necessary to effectuate the

relief granted in this Final Order.

                    11.   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
WEIL 98773054V.12


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