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Kabbage - COC re Revised 9019 Order

Date
2022-11-09

Summary

Doc 231-2, filed November 9, 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, is Exhibit 2, a redline of a proposed order. The order would authorize and approve the Settlement Agreement between KServicing and Customers Bank and grant related relief. The redline adds language reciting the November 7, 2022 hearing, Cross River Bank's objection at Docket No. 206, the Debtors' reply at Docket No. 213 and a supporting declaration at Docket No. 211. As revised, the order grants the motion, overrules the objection for the reasons stated on the record, authorizes the Company to enter into the Settlement Agreement, and waives Bankruptcy Rule 6004(a). The five-page document ends with an Exhibit 1 slip sheet for the Settlement Agreement.

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Full text

               Case 22-10951-CTG   Doc 231-2     Filed 11/09/22   Page 1 of 5




                                      Exhibit 2

                                       Redline




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                              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)
                                                             :
                                                             :
                        Debtors.1                            : (Jointly Administered)
                                                             : Re: Docket Nos. 172, 206, 211 & 213
------------------------------------------------------------ x
                    ORDER (I) AUTHORIZING AND APPROVING THE
                  SETTLEMENT AGREEMENT BETWEEN KSERVICING
              AND CUSTOMERS BANK AND (II) GRANTING RELATED RELIEF

          Upon the motion, (the “Motion”),2 of Kabbage, Inc. d/b/a KServicing (the “Company”)

and its debtor affiliates, as debtors and debtors in possession in the chapter 11 cases (collectively,

the “Debtors”), requesting entry of an order (i) authorizing entry into and approval of the

Settlement Agreement, between the Company and CB (together, the “Parties”), substantially in

the form attached hereto as Exhibit 1 to this Order, and (ii) granting related relief, all as more fully

set forth in the Motion; and the 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




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.




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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 a hearing to consider on November 7, 2022

(the “Hearing”) where it considered the relief requested in the Motion (the “Hearing”), if

necessary; and upon and Cross River Bank’s Objection to Debtors’ Motion for Entry of an Order

(I) Authorizing and Approving the Settlement Agreement Between KServicing and Customers Bank

and (II) Granting Related Relief [Docket No. 206] (the “Objection”), the Debtors’ Reply in

Support of Debtors’ Motion for Entry of an Order (I) Authorizing and Approving the Settlement

Agreement Between KServicing and Customers Bank and (II) Granting Related Relief [Docket No.

213], the First Day Declaration and the record of , the Declaration of Laquisha Milner in Support

of Debtors’ Motion for Entry of an Order (I) Authorizing and Approving the Settlement Agreement

Between KServicing and Customers Bank and (II) Granting Related Relief [Docket No. 211] and

the statements of counsel and the evidence adduced with respect to the Motion at the Hearing; 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 it appearing that the relief requested in the Motion is in the

best interests of the Debtors, their estates, creditors, and all parties in interest; and upon all of the

proceedings had before the Court and after due deliberation and sufficient cause appearing

therefor,

         IT IS HEREBY ORDERED THAT:

                  1.          The Motion is GRANTED and the Objection is OVERRULED for the

reasons set forth on the record at the Hearing.

                  1.2.        The Company is hereby authorized to enter into the Settlement Agreement.




                                                      2
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                  2.3.        The Company is hereby authorized to enter into, perform, execute, and

deliver all documents, and take all actions, necessary to immediately continue and fully implement

the Settlement Agreement in accordance with the terms, conditions, and agreements set forth in

the Settlement Agreement, including entry into the Settlement Agreement, all of which are hereby

approved.

                  3.          The Debtors reserve all rights in connection with the Settlement Agreement,

including any claims, equitable remedies, causes of action, or otherwise, and any right of estoppel

if the Settlement Agreement is not approved or otherwise does not become effective. Nothing

contained in this Motion or any actions taken by the Debtors and CB pursuant to the relief granted

is intended or should be construed as: (i) an admission as to the validity of any claim against the

Debtors, or (ii) a waiver or limitation of the Parties’ rights under the CB Agreements; the

Bankruptcy Code; and other applicable law, including, but not limited to, with respect the chapter

11 plan of liquidation, except as agreed to under the Settlement Agreement.

                  4.          The requirements of Bankruptcy Rule 6004(a) are waived.

                  5.          Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions of this

Order are immediately effective and enforceable upon its entry.

                  6.          The Debtors and CB are authorized to take all actions necessary or

appropriate to carry out the relief granted in this Order.

                  7.          This Court shall retain jurisdiction to hear and determine all matters arising

from or related to the implementation, interpretation, or enforcement of this Order.




                                                        3
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                                         Exhibit 1

                                    Settlement Agreement




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File and source

File
gov.uscourts.deb.188293.231.2.pdf
Size
279,870 bytes
SHA-256
7b5f091d51fdedac871d1454b75af01951806700fa66493fa8c5e25ce8c0f5fb
Our copy
gov.uscourts.deb.188293.231.2.pdf
Original
archive.org
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