Order Granting Debtors’ First Omnibus
- Date
- 2023-02-16
Summary
Doc 542-1 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware, filed February 16, 2023, is Exhibit A, an order granting the debtors' First Omnibus Objection (Substantive) to Certain Misclassified Claims, referencing Docket No. 491. The order text reclassifies claims listed on Schedule 1, Schedule 2 and Schedule 3 as general unsecured claims and overrules unresolved responses. It treats each objection as a separate contested matter, preserves the debtors' rights to further objections, and authorizes the debtors and Omni Agent Solutions to modify the claims register. Schedule 1 lists misclassified priority claims with claim numbers, amounts and the debtors' stated reason, generally that the claimant is a borrower on a loan the debtors service. The 20-page filing closes with secured claims of $11,000,000.00.
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 542-1 Filed 02/16/23 Page 1 of 20
EXHIBIT A
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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)
:
:
1
Debtors. : (Jointly Administered)
:
Re: Docket No. 491
------------------------------------------------------------ x
ORDER GRANTING DEBTORS’ FIRST OMNIBUS
OBJECTION (SUBSTANTIVE) TO CERTAIN MISCLASSIFIED CLAIMS
Upon the Debtors’ First Omnibus Objection (Substantive) to Certain Misclassified
Claims (the “Objection”)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 502 under title 11 of the United States Code (the “Bankruptcy Code”),
Rule 3007 of the Federal Rules of Bankruptcy Procedures (the “Bankruptcy Rules”), and Rule
3007-1 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy
Court for the District of Delaware (the “Local Rules”), (i) reclassifying the Misclassified Priority
Claims as general unsecured claims, (ii) reclassifying the Misclassified Administrative Expense
Claims as general unsecured claims, (iii) reclassifying the Misclassified Secured Claims as general
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 Objection.
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unsecured claims, and (iv) granting related relief, all as more fully set forth in the Objection; and
this Court having jurisdiction to consider the Objection 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 upon
consideration of the Objection 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 Objection 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 the relief requested in
the Objection (the “Hearing”), if necessary; and upon the record of the Hearing; and this Court
having determined that the legal and factual bases set forth in the Objection establish just cause
for the relief granted herein; and it appearing that the relief requested in the Objection 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 Objection is granted to the extent set forth herein.
2. Each proof of claim listed under the heading “Misclassified Priority
Claims” on Schedule 1 annexed hereto is hereby reclassified as set forth on Schedule 1 under the
column “Modified Classification Status”.
3. Each proof of claim listed under the heading “Misclassified Administrative
Expense Claims” on Schedule 2 annexed hereto is hereby reclassified as set forth on Schedule 2
under the column “Modified Classification Status”.
2
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4. Each proof of claim listed under the heading “Misclassified Secured
Claims” on Schedule 3 annexed hereto is hereby reclassified as set forth on Schedule 3 under the
column “Modified Classification Status”.
5. Any Response to the Objection not otherwise withdrawn, resolved, or
adjourned is hereby overruled on the merits.
6. The objections by the Debtors to the Misclassified Claims, as addressed in
the Objection and the schedules hereto, constitute a separate contested matter with respect to each
such proof of claim, as contemplated by Bankruptcy Rule 9014 and Local Rule 3007-1. This Order
shall be deemed a separate Order with respect to each Misclassified Claim.
7. Any stay of this Order pending appeal by any holder of a Misclassified
Claim or any other party with an interest in such claims that are subject to this Order shall only
apply to the contested matter which involves such party and shall not act to stay the applicability
and/or finality of this Order with respect to the other contested matters arising from the Objection
or this Order.
8. This Order has no res judicata, estoppel, or other effect on the validity,
allowance, or disallowance of any claim referenced and/or identified in the Objection that is not
listed on Schedule 1, Schedule 2, or Schedule 3 annexed hereto as a Misclassified Priority Claim,
Misclassified Administrative Expense Claim, and a Misclassified Secured Claim, respectively, and
all rights to object or defend against such claims on any basis are expressly reserved.
9. The rights of the Debtors, or any other party in interest, as applicable, to (a)
file subsequent objections to any of the Misclassified Claims on any and all substantive and/or
non-substantive grounds; (b) amend, modify, and/or supplement the Objection, including, without
limitation, the filing of objections to further amended or newly filed Claims; (c) seek expungement
3
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or reduction of any claim to the extent all or a portion of such claim has been paid; and (d) settle
any claim for less than the asserted amount are preserved.
10. The Debtors and Omni Agent Solutions are authorized to modify the Claims
Register to comport with the entry of this Order.
11. Nothing contained in the Objection or this Order, nor any payment made
pursuant to the authority granted by this Order, is intended to be or shall be construed as (a) an
admission as to the validity of any claim against the Debtors; (b) an agreement or obligation to pay
any claims; (c) a waiver of the Debtors’ or any appropriate party in interest’s rights to dispute the
amount of, basis for, or validity of any claim against the Debtors, including but not limited to, any
future objections on substantive and/or non-substantive grounds; (d) a waiver of any claim or cause
of action which may exist against any creditor or interest holder; or (e) an approval, assumption,
adoption, or rejection of any agreement, contract, lease, program, or policy between the Debtors
and any third party under section 365 of the Bankruptcy Code.
12. 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.
13. The Debtors are authorized to take all action necessary to effectuate the
relief granted in this Order.
14. The Court shall retain jurisdiction to hear and determine all matters arising
from or related to the implementation, interpretation, or enforcement of this Order.
4
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Schedule 1
Misclassified Priority Claims
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Misclassified Priority Claims1
(Claims are listed alphabetically)
Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
Alicia Bryant filed a $3,466 priority claim pursuant to section 507(a)(4) of the
$0.00 (A)
Bankruptcy Code. No basis is asserted for the claim. See proof of claim no. 951-41.
Alicia Bryant $0.00 (S)
Kabbage, Inc. Based on a review of the Debtors’ books and records, the Debtors have determined
1 11/18/2022 951-41 $3,466.00 (P) $0.00 (P)
d/b/a KServicing Alicia Bryant is a borrower of a PPP Loan that the Debtors service, and there are no
$3,466.00 (U)
amounts entitled to priority due and owing to Alicia Bryant under section 507(a)(4)
$3,466.00 (T)
(the claim is not on account of wages) of the Bankruptcy Code.
AVDN Enterprise filed a $3,125 priority claim pursuant to an unspecified subsection
$0.00 (A) of 507(a) of the Bankruptcy Code. The proof of claim asserts the “Paycheck
AVDN Enterprise LLC $0.00 (S) Protection Program” as the basis for the claim. See proof of claim no. 951-224. Based
Kabbage, Inc.
2 12/30/2022 951-224 $3,125.00 (P) $0.00 (P) on a review of the Debtors’ books and records, the Debtors have determined AVDN
d/b/a KServicing
$3,125.00 (U) Enterprise is a borrower of a PPP Loan that the Debtors service, and there are no
$3,125.00 (T) amounts entitled to priority due and owing to AVDN Enterprise under section 507(a)
of the Bankruptcy Code.
Charmaine Busch filed a proof of claim asserting a total claim of $30,000. The
claimant asserts that $25,500 is entitled to priority pursuant to sections 507(a)(1)(A)
and (a)(1)(B), 507(a)(4), 507(a)(7), and 507(a)(8) of the Bankruptcy Code. The proof
of claim asserts “money loaned . . .” as the basis for the claim. See proof of claim no.
$0.00 (A) 951-27. Based on a review of the Debtors’ books and records, the Debtors have
Charmaine Busch $0.00 (S) determined Charmaine Busch is a borrower of a Legacy Loan that the Debtors service,
Kabbage, Inc.
3 11/5/2022 951-27 $25,500.00 (P) $0.00 (P) and there are no amounts entitled to priority due and owing to Charmaine Busch under
d/b/a KServicing
$30,000.00 (U) sections 507(a)(1)(A) (the claim is not on account of domestic support obligations)
$30,000.00 (T) and (a)(1)(B) (the claim is not on account of domestic support obligations), 507(a)(4)
(the claim is not on account of wages), 507(a)(7) (the claim is not on account of a
deposit in connection with the purchase, lease, or rental of property or purchase of
services), 507(a)(8) (the claim is not on account of governmental units) of the
Bankruptcy Code.
Wellness Rehabilitation filed a $20,833 priority claim pursuant to an unspecified
subsection of 507(a) of the Bankruptcy Code. The proof of claim asserts the “Paycheck
$0.00 (A)
Corinthus Omari Pittman (Wellness Protection Program” as the basis for the claim. See proof of claim no. 951-218. Based
$0.00 (S)
Rehabilitation LLC) Kabbage, Inc. on a review of the Debtors’ books and records, the Debtors have determined Wellness
4 12/19/2022 951-218 $20,833.00 (P) $0.00 (P)
d/b/a KServicing Rehabilitation is a borrower of a PPP Loan that the Debtors service, and there are no
$20,833.00 (U)
amounts entitled to priority due and owing to Wellness Rehabilitation under section
$20,833.00 (T)
507(a) of the Bankruptcy Code. Further, Wellness Rehabilitation does not provide any
documentation in support of the claim.
Deborah A Mastrandrea Kabbage, Inc. $0.00 (A) Deborah A. Mastrandrea filed a $3,900 priority claim pursuant to section 507(a)(7) of
5 11/15/2022 951-30 $3,900.00 (P)
d/b/a KServicing $0.00 (S) the Bankruptcy Code. The proof of claim asserts “money loaned” as the basis for the
1
Certain of the Misclassified Priority Claims assert more than one incorrect classification status. This schedule lists only the misclassified priority amounts.
2
(A) - Administrative, including 503(b)(9); (S) - Secured; (P) - Priority; (U) - Unsecured; (T) – Total.
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Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
$0.00 (P) claim. See proof of claim no. 951-30. Based on a review of the Debtors’ books and
$3,900.00 (U) records, the Debtors have determined Deborah A. Mastrandrea is a borrower of a PPP
$3,900.00 (T) Loan that the Debtors service, and there are no amounts entitled to priority due and
owing to Deborah A. Mastrandrea under section 507(a)(7) (the claim is not on account
of a deposit in connection with the purchase, lease, or rental of property or purchase of
services) of the Bankruptcy Code. Further, Deborah A. Mastrandrea does not provide
any documentation in support of the claim.
Kelvin Foster filed a proof of claim asserting a total claim of $3,000. The claimant
asserts that $2,000 is entitled to priority pursuant to section 507(a)(7) of the
Bankruptcy Code. The proof of claim asserts “goods sold” as the basis for the claim.
$0.00 (A)
See proof of claim no. 951-231. Based on a review of the Debtors’ books and records,
Kelvin Foster $0.00 (S)
Kabbage, Inc. the Debtors have determined Kelvin Foster is a borrower of a PPP Loan that the
6 01/23/2023 951-231 $2,000.00 (P) $0.00 (P)
d/b/a KServicing Debtors service, and there are no amounts entitled to priority due and owing to Kelvin
$3,000.00 (U)
Foster under section 507(a)(7) (the claim is not on account of a deposit in connection
$3,000.00 (T)
with the purchase, lease, or rental of property or purchase of services) of the
Bankruptcy Code. Further, Kelvin Foster does not provide any documentation in
support of the claim.
Lakeysha James filed a $12,708 priority claim pursuant to section 507(a)(4) of the
$0.00 (A) Bankruptcy Code. The proof of claim asserts “services performed” as the basis for the
Lakeysha James $0.00 (S) claim. See Proof of claim no. 951-229. Based on a review of the Debtors’ books and
Kabbage, Inc.
7 01/17/2023 951-229 $12,708.00 (P) $0.00 (P) records, the Debtors have determined Lakeysha James is a borrower of a PPP Loan that
d/b/a KServicing
$12,708.00 (U) the Debtors service, and there are no amounts entitled to priority due and owing to
$12,708.00 (T) Lakeysha James under section 507(a)(4) (the claim is not on account of wages) of the
Bankruptcy Code.
Lakina Evans filed two proofs of claim, each asserting a total claim of $3,216.00.
Notwithstanding the asserted total value of the claim, proof of claim no. 951-3 asserts a
$3,350 priority claim pursuant to section 507(a)(7) of the Bankruptcy Code. No basis
$0.00 (A)
is asserted for the claim. See proof of claim no. 951-3. Based on a review of the
Lakina Evans $0.00 (S)
Kabbage, Inc. Debtors’ books and records, the Debtors have determined Lakina Evans is a borrower
8 10/29/2022 951-3 $3,350.00 (P) $0.00 (P)
d/b/a KServicing of a PPP Loan that the Debtors service, and there are no amounts entitled to priority
$3,216.00 (U)
due and owing to Lakina Evans under section 507(a)(7) (the claim is not on account of
$3,216.00 (T)
a deposit in connection with the purchase, lease, or rental of property or purchase of
services) of the Bankruptcy Code. Further, Lakina Evans does not provide any
documentation in support of the claim.
Lakina Evans filed two proofs of claim, each asserting a total claim of $3,216.00.
Notwithstanding the asserted total value of the claim, proof of claim no. 951-4 asserts a
$3,250 priority claim pursuant to section 507(a)(7) of the Bankruptcy Code. No basis
$0.00 (A)
is asserted for the claim. See proof of claim no. 951-4. Based on a review of the
Lakina Evans $0.00 (S)
Kabbage, Inc. Debtors’ books and records, the Debtors have determined Lakina Evans is a borrower
9 10/29/2022 951-4 $3,250.00 (P) $0.00 (P)
d/b/a KServicing of a PPP Loan that the Debtors service, and there are no amounts entitled to priority
$3,216.00 (U)
due and owing to Lakina Evans under section 507(a)(7) (the claim is not on account of
$3,216.00 (T)
a deposit in connection with the purchase, lease, or rental of property or purchase of
services) of the Bankruptcy Code. Further, Lakina Evans does not provide any
documentation in support of the claim.
2
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Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
Lauren Garber filed a $17,700 priority claim pursuant to sections 507(a)(4) and
507(a)(5) of the Bankruptcy Code. The proof of claim form asserts “Paycheck
$0.00 (A) Protection Program loan approved by [the] SBA” as the basis for the priority claim.
Lauren Garber $0.00 (S) See proof of claim form no. 951-153. Based on a review of the Debtors’ books and
Kabbage, Inc.
10 11/30/2022 951-153 $17,700.00 (P) $0.00 (P) records, the Debtors have determined Lauren Garber is a borrower of a PPP Loan that
d/b/a KServicing
$17,700.00 (U) the Debtors service, and there are no amounts entitled to priority due and owing to
$17,700.00 (T) Lauren Garber under sections 507(a)(4) (the claim is not on account of wages) and
507(a)(5) (the claim is not on account of contributions to an employee benefit plan) of
the Bankruptcy Code.
Michael Hamlin filed a $13,000 priority claim pursuant to an unspecified subsection of
section 507(a) of the Bankruptcy Code. The proof of claim asserts a “foreclosure with
$0.00 (A)
court agreement” as the basis for the claim. See proof of claim no. 955-2. Based on a
Michael Hamlin Kabbage Asset $0.00 (S)
review of the Debtors’ books and records, the Debtors have determined Michael
11 11/12/2022 955-2 Funding 2019-A, $13,000.00 (P) $0.00 (P)
Hamlin is a borrower of a Legacy Loan that the Debtors service, and there are no
LLC $13,000.00 (U)
amounts entitled to priority due and owing to Michael Hamlin under section 507(a) of
$13,000.00 (T)
the Bankruptcy Code. Further, Michael Hamlin does not provide any documentation in
support of the claim.
Michael R. Hamlin filed a $500,000 priority claim pursuant to an unspecified
subsection of section 507(a) of the Bankruptcy Code. The proof of claim asserts a “lien
$0.00 (A) against property that Kabbage, Inc must [have] purchased” as the basis for the claim.
Michael R. Hamlin $0.00 (S) See proof of claim no. 951-25. Based on a review of the Debtors’ books and records,
Kabbage, Inc.
12 11/12/2022 951-25 $500,000.00 (P) $0.00 (P) the Debtors have determined Michael R. Hamlin is a borrower of a Legacy Loan that
d/b/a KServicing
$500,000.00 (U) the Debtors service, and there are no amounts entitled to priority due and owing to
$500,000.00 (T) Michael R. Hamlin under section 507(a) of the Bankruptcy Code, and no record of the
alleged lien. Further, Michael R. Hamlin does not provide any documentation in
support of the claim.
Nicolas E. Feliz filed an $866.49 priority claim pursuant to section of 507(a)(4) of the
$0.00 (A) Bankruptcy Code. The proof of claim asserts “PPP loan paid by me to Kabbage on
Nicolas E. Feliz $0.00 (S) 08/2022 . . .” as the basis for the claim. See proof of claim no. 951-23. Based on a
Kabbage, Inc.
13 11/8/2022 951-23 $886.49 (P) $0.00 (P) review of the Debtors’ books and records, the Debtors have determined Nicolas E.
d/b/a KServicing
$886.49 (U) Feliz is a borrower of a PPP Loan that the Debtors service, and there are no amounts
$886.49 (T) entitled to priority due and owing to Nicolas E. Feliz under section 507(a)(4) (the claim
is not on account of wages) of the Bankruptcy Code.
Quyen Nguyen filed a proof of claim asserting a total claim of $3,349.27. The
claimant asserts that $3,270 is entitled to priority pursuant to section 507(a)(4) of the
$0.00 (A)
Bankruptcy Code. The proof of claim form asserts “services performed” as the basis
Quyen Nguyen $0.00 (S)
Kabbage, Inc. for the claim. See proof of claim no. 951-194. Based on a review of the Debtors’
14 12/2/2022 951-194 $3,270.00 (P) $0.00 (P)
d/b/a KServicing books and records, the Debtors have determined Quyen Nguyen is a borrower of a PPP
$3,349.27 (U)
Loan that the Debtors service, and there are no amounts entitled to priority due and
$3,349.27 (T)
owing to Quyen Nguyen under section 507(a)(4) (the claim is not on account of wages)
of the Bankruptcy Code.
$0.00 (A) Rajesh Oza filed a $2,800 priority claim pursuant to section 507(a)(7) of the
Rajesh Oza Kabbage, Inc. $0.00 (S) Bankruptcy Code. No basis is asserted for the claim. See proof of claim no. 951-24.
15 11/15/2022 951-24 $2,800.00 (P)
d/b/a KServicing $0.00 (P) Based on a review of the Debtors’ books and records, the Debtors have determined
$2,800.00 (U) Rajesh Oza is a borrower of a PPP Loan that the Debtors service, and there are no
3
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Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
$2,800.00 (T) amounts entitled to priority due and owing to Rajesh Oza under section 507(a)(7) (the
claim is not on account of a deposit in connection with the purchase, lease, or rental of
property or purchase of services) of the Bankruptcy Code. Further, Rajesh Oza does
not provide any documentation in support of the claim.
Randolph Redley filed a $16,248 priority claim pursuant to an unspecified subsection
$0.00 (A) of 507(a) of the Bankruptcy Code. The proof of claim asserts “PPP loan forgiveness”
Randolph Redley $0.00 (S) as the basis for the claim. See proof of claim no. 951-136. Based on a review of the
Kabbage, Inc.
16 11/30/2022 951-136 $16,248.00 (P) $0.00 (P) Debtors’ books and records, the Debtors have determined Randolph Redley is a
d/b/a KServicing
$16,248.00 (U) borrower of a PPP Loan that the Debtors service, and there are no amounts entitled to
$16,248.00 (T) priority due and owing to Randolph Redley under section 507(a) of the Bankruptcy
Code.
Robert Clifton filed a $19,000 priority claim pursuant to section 507(a)(4) of the
Bankruptcy Code. The proof of claim form asserts “bank account / my own money was
$0.00 (A) fraudulently withdrawn” as the basis for the priority claim. See proof of claim no. 951-
Robert Clifton $0.00 (S) 173. Based on a review of the Debtors’ books and records, the Debtors have
Kabbage, Inc.
17 11/30/2022 951-173 $19,000.00 (P) $0.00 (P) determined Robert Clifton is a borrower of a PPP Loan that the Debtors service, and
d/b/a KServicing
$19,000.00 (U) there are no amounts entitled to priority due and owing to Robert Clifton under section
$19,000.00 (T) 507(a)(4) (the claim is not on account of wages) of the Bankruptcy Code. Further, the
claim is in excess of the statutory limit under section 507(a)(4) of the Bankruptcy
Code, and Robert Clifton does not provide any documentation in support of the claim.
The Orthodox Church filed a $10,227 priority claim pursuant to section 507(a)(4) of
$0.00 (A) the Bankruptcy Code. The proof of claim asserts the “Paycheck Protection Program” as
SS Peter and Paul Orthodox Church $0.00 (S) the basis for the claim. See proof of claim no. 951-195. Based on a review of the
EIN 06-6087116 Kabbage, Inc.
18 12/3/2022 951-195 $10,227.00 (P) $0.00 (P) Debtors’ books and records, the Debtors have determined the Orthodox Church is a
d/b/a KServicing
$10,227.00 (U) borrower of a PPP Loan that the Debtors service, and there are no amounts entitled to
$10,227.00 (T) priority due and owing to the Orthodox Church under section 507(a)(4) (the claim is
not on account of wages) of the Bankruptcy Code.
Stewart Williams filed a proof of claim asserting a total claim of $20,000.
Notwithstanding the asserted total value of the claim, the claimant asserts that $30,000
is entitled to priority pursuant to sections 507(a)(1)(A) and (a)(1)(B), 507(a)(4), and
507(a)(7) of the Bankruptcy Code. The proof of claim asserts “they sent money to the
wrong account, got it back and held it, after I got credits against the money they said
$0.00 (A) time run out” as the basis for the claim. See proof of claim no. 951-213. Based on a
Stewart Williams $0.00 (S) review of the Debtors’ books and records, the Debtors have determined that there are
Kabbage, Inc.
19 12/8/2022 951-213 $30,000.00 (P) $0.00 (P) no amounts entitled to priority due and owing to Stewart Williams under sections
d/b/a KServicing
$20,000.00 (U) 507(a)(1)(A) (the claim is not on account of domestic support obligations) and
$20,000.00 (T) (a)(1)(B) (the claim is not on account of domestic support obligations), 507(a)(4) (the
claim is not on account of wages), and 507(a)(7) (the claim is not on account of a
deposit in connection with the purchase, lease, or rental of property or purchase of
services) of the Bankruptcy Code. Further, Stewart Williams does not provide any
documentation in support of the claim, and the claim is in excess of the statutory limit
under section 507(a)(7) of the Bankruptcy Code.
Summer Stegall $0.00 (A) Summer Stegall filed a proof of claim asserting a total claim of $42,023.65. The
Kabbage, Inc.
20 11/24/2022 951-49 $30,523.00 (P) $0.00 (S) claimant asserts that $30,523 is entitled to priority pursuant to sections 507(a)(1)(A)
d/b/a KServicing
$0.00 (P) and (a)(1)(B), 507(a)(4), 507(a)(7), and 507(a)(8) of the Bankruptcy Code. The proof
4
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Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
$42,023.65 (U) of claim asserts “money loaned/personal injury” as the basis for the claim. See proof
$42,023.65 (T) of claim no. 951-49. Based on a review of the Debtors’ books and records, the Debtors
have determined Summer Stegall is a borrower of a PPP Loan that the Debtors service,
and there are no amounts entitled to priority due and owing to Summer Stegall under
sections 507(a)(1)(A) (the claim is not on account of domestic support obligations) and
(a)(1)(B) (the claim is not on account of domestic support obligations), 507(a)(4) (the
claim is not on account of wages), 507(a)(7) (the claim is not on account of a deposit in
connection with the purchase, lease, or rental of property or purchase of services), and
507(a)(8) (the claim is not on account of governmental units) of the Bankruptcy Code.
Further, the claim is in excess of the statutory limit under section 507(a)(7).
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
claims. See proof of claim no. 951-91. Based on a review of the Debtors’ books and
$0.00 (A)
records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
The Juneau Group, LLC $0.00 (S)
Kabbage, Inc. that the Debtors service, and there are no amounts entitled to priority due and owing to
21 11/28/2022 951-91 $11,000,000.00 (P) $0.00 (P)
d/b/a KServicing the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
$11,000,000.00 (U)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
$11,000,000.00 (T)
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
does not provide any documentation in support of the $11,000,000 claims, and the
total value of the Juneau Group’s PPP Loan is only $2,223.
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
claims. See proof of claim no. 955-4. Based on a review of the Debtors’ books and
$0.00 (A)
records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
The Juneau Group, LLC Kabbage Asset $0.00 (S)
that the Debtors service, and there are no amounts entitled to priority due and owing to
22 11/28/2022 955-4 Funding 2019-A, $11,000,000.00 (P) $0.00 (P)
the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
LLC $11,000,000.00 (U)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
$11,000,000.00 (T)
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
does not provide any documentation in support of the $11,000,000 claims, and the total
value of the Juneau Group’s PPP Loan is only $2,223.
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
$0.00 (A)
claims. See proof of claim no. 952-2. Based on a review of the Debtors’ books and
The Juneau Group, LLC $0.00 (S)
Kabbage Canada records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
23 11/28/2022 952-2 $11,000,000.00 (P) $0.00 (P)
Holdings, LLC that the Debtors service, and there are no amounts entitled to priority due and owing to
$11,000,000.00 (U)
the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
$11,000,000.00 (T)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
5
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 12 of 20
Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
does not provide any documentation in support of the $11,000,000 claims, and the
total value of the Juneau Group’s PPP Loan is only $2,223.
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
claims. See proof of claim no. 953-2. Based on a review of the Debtors’ books and
$0.00 (A)
records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
The Juneau Group, LLC Kabbage Asset $0.00 (S)
that the Debtors service, and there are no amounts entitled to priority due and owing to
24 11/28/2022 953-2 Securitization, $11,000,000.00 (P) $0.00 (P)
the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
LLC $11,000,000.00 (U)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
$11,000,000.00 (T)
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
does not provide any documentation in support of the $11,000,000 claims, and the
total value of the Juneau Group’s PPP Loan is only $2,223.
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
claims. See proof of claim no. 954-2. Based on a review of the Debtors’ books and
$0.00 (A)
records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
The Juneau Group LLC Kabbage Asset $0.00 (S)
that the Debtors service, and there are no amounts entitled to priority due and owing to
25 11/28/2022 954-2 Funding 2017-A, $11,000,000.00 (P) $0.00 (P)
the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
LLC $11,000,000.00 (U)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
$11,000,000.00 (T)
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
does not provide any documentation in support of the $11,000,000 claims, and the total
value of the Juneau Group’s PPP Loan is only $2,223.
The Juneau Group filed identical $11,000,000 priority claims against each of the
Debtor entities pursuant to sections 507(a)(4), 507(a)(7), 507(a)(8), and an unspecified
subsection of 507(a) of the Bankruptcy Code. No basis is asserted for any of the
claims. See proof of claim no. 956-2. Based on a review of the Debtors’ books and
$0.00 (A)
records, the Debtors have determined the Juneau Group is a borrower of a PPP Loan
The Juneau Group LLC $0.00 (S)
Kabbage that the Debtors service, and there are no amounts entitled to priority due and owing to
26 11/28/2022 956-2 $11,000,000.00 (P) $0.00 (P)
Diameter, LLC the Juneau Group under sections 507(a)(4) (the claim is not on account of wages),
$11,000,000.00 (U)
507(a)(7) (the claim is not on account of a deposit in connection with the purchase,
$11,000,000.00 (T)
lease, or rental of property or purchase of services), and 507(a)(8) (the claim is not on
account of governmental units) of the Bankruptcy Code. Further, the Juneau Group
does not provide any documentation in support of the $11,000,000 claims, and the total
value of the Juneau Group’s PPP Loan is only $2,223.
Valeria Sanders filed a $17,378 priority claim pursuant to an unspecified subsection of
$0.00 (A)
section 507(a) of the Bankruptcy Code. The proof of claim asserts “money loaned but
Valeria Sanders $0.00 (S)
Kabbage, Inc. never received” as the basis for the priority claim. See proof of claim no. 951-108.
27 11/29/2022 951-108 $17,378.00 (P) $0.00 (P)
d/b/a KServicing Based on a review of the Debtors’ books and records, the Debtors have determined
$17,378.00 (U)
Valeria Sanders is a borrower of a PPP Loan that the Debtors service, and there are no
$17,378.00 (T)
amounts entitled to priority due and owing to Valeria Sanders under section 507(a) of
6
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 13 of 20
Claimant Name Misclassified Modified
Date Claim Claim
# Debtor Name Priority Claim Classification Reason for Reclassification
Filed No.
Amount Status2
the Bankruptcy Code. Further, Valeria Sanders does not provide any documentation in
support of the claim.
Yanelys Gomez filed a $3,600 priority claim pursuant to section 507(a)(4) of the
$0.00 (A) Bankruptcy Code. The proof of claim asserts “loaned” as the basis for the claim. See
Yanelys Gomez $0.00 (S) proof of claim no. 951-205. Based on a review of the Debtors’ books and records, the
Kabbage, Inc.
28 12/6/2022 951-205 $3,600.00 (P) $0.00 (P) Debtors have determined Yanelys Gomez is a borrower of a PPP Loan that the Debtors
d/b/a KServicing
$3,600.00 (U) service, and there are no amounts entitled to priority due and owing to Yanelys Gomez
$3,600.00 (T) under section 507(a)(4) (the claim is not on account of wages) of the Bankruptcy Code.
Further, Yanelys Gomez does not provide any documentation in support of the claim.
7
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Schedule 2
Misclassified Administrative Expense Claims
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 15 of 20
Misclassified Administrative Expense Claims1
(Claims are listed alphabetically)
Misclassified
Date Claim Claim Modified Classification
# Claimant Name Debtor Name Administrative Reason for Reclassification
Filed No. Status2
Claim Amount
Best Sister filed a $21,120.34 administrative expense claim pursuant to section
$0.00 (A) 503(b)(9) of the Bankruptcy Code. The proof of claim asserts “money loaned” as the
Best Sister Friends Catering and $0.00 (S) basis for the claim. See proof of claim no. 951-58. Based on a review of the Debtors’
Events LLC Kabbage, Inc.
1 11/25/2022 951-58 $21,120.34 (A) $0.00 (P) books and records, the Debtors have determined Best Sister is a borrower of a PPP
d/b/a KServicing
$21,120.34 (U) Loan that the Debtors service, and there is no evidence of the Debtors receiving goods
$21,120.34 (T) from Best Sister within the twenty days prior to the Petition Date, in the ordinary
course, as required by section 503(b)(9) of the Bankruptcy Code.
Carlos Aceves filed a proof of claim asserting a total claim of $63,490. The
claimant asserts that $1,549 is an administrative expense claim pursuant to section
$0.00 (A) 503(b)(9) of the Bankruptcy Code. The proof of claim asserts “loan was approved
Carlos Aceves $0.00 (S) f[or] $63,490 after months a deposit of $1,590” as the basis for the claim. See
Kabbage, Inc.
2 12/10/2022 951-215 $1,549.00 (A) $0.00 (P) proof of claim no. 951-215. Based on a review of the Debtors’ books and records,
d/b/a KServicing
$63,490.00 (U) the Debtors have determined Carlos Aceves is a borrower of a PPP Loan that the
$63,490.00 (T) Debtors service, and there is no evidence of the Debtors receiving goods from
Carlos Aceves within the twenty days prior to the Petition Date, in the ordinary
course, as required by section 503(b)(9) of the Bankruptcy Code.
Charmaine Busch filed a $30,000 administrative expense claim pursuant to section
503(b)(9) of the Bankruptcy Code. The proof of claim asserts “money loaned . . .”
$0.00 (A)
as the basis for the claim. See proof of claim no. 951-27. Based on a review of the
Charmaine Busch $0.00 (S)
Kabbage, Inc. Debtors’ books and records, the Debtors have determined Charmaine Busch is a
3 11/5/2022 951-27 $30,000.00 (A) $0.00 (P)
d/b/a KServicing borrower of a Legacy Loan that the Debtors service, and there is no evidence of the
$30,000.00 (U)
Debtors receiving goods from Charmaine Busch within the twenty days prior to the
$30,000.00 (T)
Petition Date, in the ordinary course, as required by section 503(b)(9) of the
Bankruptcy Code.
Deborah A. Mastrandrea filed a $3,900 administrative expense claim pursuant to
section 503(b)(9) of the Bankruptcy Code. The proof of claim asserts “money
$0.00 (A) loaned” as the basis for the claim. See proof of claim no. 951-30. Based on a
Deborah A Mastrandrea $0.00 (S) review of the Debtors’ books and records, the Debtors have determined Deborah A.
Kabbage, Inc.
4 11/15/2022 951-30 $3,900.00 (A) $0.00 (P) Mastrandrea is a borrower of a PPP loan that the Debtors service, and there is no
d/b/a KServicing
$3,900.00 (U) evidence of the Debtors receiving goods from Deborah A. Mastrandrea within the
$3,900.00 (T) twenty days prior to the Petition Date, in the ordinary course, as required by
section 503(b)(9) of the Bankruptcy Code. Further, Deborah A. Mastrandrea does
not attach any documentation in support of the claim.
1
Certain of the Misclassified Administrative Expense Claims assert more than one incorrect classification status. This schedule lists only the misclassified administrative expense amounts.
2
(A) - Administrative, including 503(b)(9); (S) - Secured; (P) - Priority; (U) - Unsecured; (T) – Total.
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 16 of 20
Misclassified
Date Claim Claim Modified Classification
# Claimant Name Debtor Name Administrative Reason for Reclassification
Filed No. Status2
Claim Amount
George Mallios filed three proofs of claim, each asserting a $209,816.08 administrative
expense claim pursuant to section 503(b)(9) of the Bankruptcy Code. The proofs of
$0.00 (A)
claim assert “failure to provide forgiveness” as the basis for the claim. See proof of
George James Mallios, PC $0.00 (S)
Kabbage, Inc. claim no. 951-196. Based on a review of the Debtors’ books and records, the Debtors
5 12/5/2022 951-196 $209,816.08 (A) $0.00 (P)
d/b/a KServicing have determined George Mallios is a borrower of a PPP Loan that the Debtors service,
$209,816.08 (U)
and there is no evidence of the Debtors receiving goods from George Mallios within
$209,816.08 (T)
the twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
George Mallios filed three proofs of claim, each asserting a $209,816.08
administrative expense claim pursuant to section 503(b)(9) of the Bankruptcy Code.
$0.00 (A)
The proofs of claim assert “failure to provide forgiveness” as the basis for the claim.
George James Mallios, PC $0.00 (S)
Kabbage, Inc. See proof of claim no. 951-207. Based on a review of the Debtors’ books and records,
6 12/5/2022 951-207 $209,816.08 (A) $0.00 (P)
d/b/a KServicing the Debtors have determined George Mallios is a borrower of a PPP Loan that the
$209,816.08 (U)
Debtors service, and there is no evidence of the Debtors receiving goods from George
$209,816.08 (T)
Mallios within the twenty days prior to the Petition Date, in the ordinary course, as
required by section 503(b)(9) of the Bankruptcy Code.
George Mallios filed three proofs of claim, each asserting a $209,816.08 administrative
expense claim pursuant to section 503(b)(9) of the Bankruptcy Code. The proofs of
$0.00 (A)
claim assert “failure to provide forgiveness” as the basis for the claim. See proof of
George James Mallios, PC $0.00 (S)
Kabbage, Inc. claim no. 951-216. Based on a review of the Debtors’ books and records, the Debtors
7 12/10/2022 951-216 $209,816.08 (A) $0.00 (P)
d/b/a KServicing have determined George Mallios is a borrower of a PPP Loan that the Debtors service,
$209,816.08 (U)
and there is no evidence of the Debtors receiving goods from George Mallios within
$209,816.08 (T)
the twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
Kelvin Foster filed a proof of claim asserting a total claim of $3,000. The claimant
asserts that $2,000 is an administrative expense claim pursuant to section 503(b)(9) of
$0.00 (A)
the Bankruptcy Code. The proof of claim asserts “goods sold” as the basis for the
Kelvin Foster $0.00 (S)
Kabbage, Inc. claim. See proof of claim no. 951-231. Based on a review of the Debtors’ books and
8 01/23/2023 951-231 $2,000.00 (A) $0.00 (P)
d/b/a KServicing records, the Debtors have determined Kelvin Foster is a borrower of a PPP Loan that
$3,000.00 (U)
the Debtors service, and there is no evidence of the Debtors receiving goods from
$3,000.00 (T)
Kelvin Foster within the twenty days prior to the Petition Date, in the ordinary course,
as required by section 503(b)(9) of the Bankruptcy Code.
Madel Hernandez filed a $32,000 administrative expense claim pursuant to section
503(b)(9) of the Bankruptcy Code. The proof of claim asserts “Loan” as the basis
$0.00 (A)
Madel Carmen Hernandez dba for the claim. See proof of claim no. 951-15. Based on a review of the Debtors’
$0.00 (S)
TODO PARA TU PACHANG Kabbage, Inc. books and records, the Debtors have determined Madel Hernandez is a borrower of
9 11/3/2022 951-15 $32,000.00 (A) $0.00 (P)
d/b/a KServicing a Legacy Loan that the Debtors service, and there is no evidence of the Debtors
$32,000.00 (U)
receiving goods from Madel Hernandez within the twenty days prior to the Petition
$32,000.00 (T)
Date, in the ordinary course, as required by section 503(b)(9) of the Bankruptcy
Code.
2
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 17 of 20
Misclassified
Date Claim Claim Modified Classification
# Claimant Name Debtor Name Administrative Reason for Reclassification
Filed No. Status2
Claim Amount
Paula Roach filed three proofs of claim, each asserting a $112,770 administrative
expense claim pursuant to section 503(b)(9) of the Bankruptcy Code. The proofs of
$0.00 (A)
claim assert “failure to provide forgiveness” as the basis for the claim. See proof of
Paula Roach $0.00 (S)
Kabbage, Inc. claim no. 951-208. Based on a review of the Debtors’ books and records, the Debtors
10 12/5/2022 951-208 $112,770.00 (A) $0.00 (P)
d/b/a KServicing have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
$112,770.00 (U)
and there is no evidence of the Debtors receiving goods from Paula Roach within the
$112,770.00 (T)
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
Paula Roach filed three proofs of claim, each asserting a $112,770 administrative
expense claim pursuant to section 503(b)(9) of the Bankruptcy Code. The proofs of
$0.00 (A)
claim assert “failure to provide forgiveness” as the basis for the claim. See proof of
Paula Roach $0.00 (S)
Kabbage, Inc. claim no. 951-210. Based on a review of the Debtors’ books and records, the Debtors
11 12/5/2022 951-210 $112,770.00 (A) $0.00 (P)
d/b/a KServicing have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
$112,770.00 (U)
and there is no evidence of the Debtors receiving goods from Paula Roach within the
$112,770.00 (T)
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
Paula Roach filed three proofs of claim, each asserting a $112,770 administrative
expense claim pursuant to section 503(b)(9) of the Bankruptcy Code. The proofs of
$0.00 (A)
claim assert “failure to provide forgiveness” as the basis for the claim. See proof of
Paula Roach $0.00 (S)
Kabbage, Inc. claim no. 951-214. Based on a review of the Debtors’ books and records, the Debtors
12 12/7/2022 951-214 $112,770.00 (A) $0.00 (P)
d/b/a KServicing have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
$112,770.00 (U)
and there is no evidence of the Debtors receiving goods from Paula Roach within the
$112,770.00 (T)
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
Randolph Redley filed a $16,248 administrative expense claim pursuant to section
503(b)(9) of the Bankruptcy Code. The proof of claim asserts “SBA PPP loan
$0.00 (A)
forgiveness” as the basis for the claim. See proof of claim no. 951-136. Based on
Randolph Redley $0.00 (S)
Kabbage, Inc. a review of the Debtors’ books and records, the Debtors have determined
13 11/30/2022 951-136 $16,248.00 (A) $0.00 (P)
d/b/a KServicing Randolph Redley is a borrower of a PPP Loan that the Debtors service, and there is
$16,248.00 (U)
no evidence of the Debtors receiving goods from Randolph Redley within the
$16,248.00 (T)
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
The Juneau Group filed an administrative expense claim pursuant to section 503(b)(9)
of the Bankruptcy Code, in the amount of $20,833 per month for the duration of the
Chapter 11 Cases for an aggregate amount of $499,999.99. The proof of claim asserts
$0.00 (A) “TIME” as the basis for the claim. See proof claim no. 951-184. Based on a review of
The Juneau Group, LLC $0.00 (S) the Debtors’ books and records, the Debtors have determined the Juneau Group is a
Kabbage, Inc.
14 11/28/2022 951-184 $499,999.99 (A) $0.00 (P) borrower of a PPP Loan that the Debtors service, and there is no evidence of the
d/b/a KServicing
$499,999.99 (U) Debtors receiving goods from the Juneau Group within the twenty days prior to the
$499,999.99 (T) Petition Date, in the ordinary course, as required by section 503(b)(9) of the
Bankruptcy Code. Further, the Juneau Group does not attach any documentation in
support of the $499,999.99 claim, and the total value of the Juneau Group’s PPP Loan
is only $2,223.
3
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Schedule 3
Misclassified Secured Claims
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Misclassified Secured Claims1
(Claims are listed alphabetically)
Misclassified
Date Claim Claim Modified
# Claimant Name Debtor Name Secured Claim Reason for Reclassification
Filed No. Classification Status2
Amount
$0.00 (A) Anthony Dinish filed a secured claim for an unliquidated amount. The proof of
claim asserts “chapter 11 bankruptcy” as the basis for the claim. See proof of claim
Anthony Dinish $0.00 (S)
Kabbage, Inc. no. 951-185. Based on a review of the Debtors’ books and records, the Debtors
1 11/28/2022 951-185 $0.00 (S) $0.00 (P)
d/b/a KServicing have determined Anthony Dinish is a borrower of a PPP Loan that the Debtors
$0.00 (U) service, and there is no basis for the claim’s secured status under section 506 of the
$0.00 (T) Bankruptcy Code.
$0.00 (A) Kadada filed a $22,000 secured claim. The proof of claim asserts “money loaned”
Kadada, LLC $0.00 (S) as the basis for the claim. See proof of claim no. 951-226. Based on a review of the
Kabbage, Inc.
2 1/5/2023 951-226 $22,000.00 (S) $0.00 (P) Debtors’ books and records, the Debtors have determined Kadada is a borrower of a
d/b/a KServicing
$22,000.00 (U) PPP Loan that the Debtors service, and there is no basis for the claim’s secured status
$22,000.00 (T) under section 506 of the Bankruptcy Code.
Michael R. Hamlin filed a $500,000 secured claim. The proof of claim asserts “a lien
$0.00 (A) against property, that Kabbage Inc, must [have] purchased” as the basis for the claim.
The claimant further asserts that the lien is against 13 River Street, Sanford, Maine,
Michael R. Hamlin $0.00 (S)
Kabbage, Inc. which is on file at the York County Registry of Deeds. See proof of claim no. 951-25.
3 11/12/2022 951-25 $500,000.00 (S) $0.00 (P)
d/b/a KServicing Based on a review of the Debtors’ books and records, the Debtors have determined
$500,000.00 (U) Michael R. Hamlin is a borrower of a Legacy Loan that the Debtors service, there is no
$500,000.00 (T) evidence of the alleged lien, and no basis for the claim’s secured status under section
506 of the Bankruptcy Code.
$0.00 (A) Summer Stegall filed a filed a proof of claim asserting a total claim of $42,023.65,
including a $42,023 secured claim. The proof of claim asserts “money loaned/personal
Summer Stegall $0.00 (S)
Kabbage, Inc. injury” as the basis for the claim. See proof of claim no. 951-49. Based on a review of
4 11/24/2022 951-49 $42,023.65 (S) $0.00 (P)
d/b/a KServicing the Debtors’ books and records, the Debtors have determined Summer Stegall is a
$42,023.65 (U) borrower of a PPP Loan that the Debtors service, and there is no basis for the claim’s
$42,023.65 (T) secured status under section 506 of the Bankruptcy Code.
The Juneau Group filed identical $11,000,000 secured claims against each of the
$0.00 (A) Debtor entities. No basis for the claims is provided. See proof of claim no. 954-2.
Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group, LLC Kabbage Asset $0.00 (S)
Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
5 11/28/2022 954-2 Funding 2017-A, $11,000,000.00 (S) $0.00 (P) evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
LLC $11,000,000.00 (U) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
$11,000,000.00 (T) documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
1
Certain of the Misclassified Secured Claims assert more than one incorrect classification status. This schedule lists only the misclassified secured amounts.
2
(A) - Administrative, including 503(b)(9); (S) - Secured; (P) - Priority; (U) - Unsecured; (T) – Total.
RLF1 28611784V.1
Case 22-10951-CTG Doc 542-1 Filed 02/16/23 Page 20 of 20
Misclassified
Date Claim Claim Modified
# Claimant Name Debtor Name Secured Claim Reason for Reclassification
Filed No. Classification Status2
Amount
The Juneau Group filed identical $11,000,000 secured claims against each of the
$0.00 (A) Debtor entities. No basis for the claims is provided. See proof of claim no. 956-2.
Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group LLC $0.00 (S)
Kabbage Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
6 11/28/2022 956-2 $11,000,000.00 (S) $0.00 (P)
Diameter, LLC evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
$11,000,000.00 (U) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
$11,000,000.00 (T) documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
The Juneau Group filed identical $11,000,000 secured claims against each of the
$0.00 (A) Debtor entities. No basis for the claims is provided. See proof of claim no. 951-91.
Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group, LLC $0.00 (S)
Kabbage, Inc. Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
7 11/28/2022 951-91 $11,000,000.00 (S) $0.00 (P)
d/b/a KServicing evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
$11,000,000.00 (U) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
$11,000,000.00 (T) documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
The Juneau Group filed identical $11,000,000 secured claims against each of the
Debtor entities. No basis for the claims is provided. See proof of claim no. 955-4.
$0.00 (A) Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group, LLC Kabbage Asset
$0.00 (S)$0.00 (P) Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
8 11/28/2022 955-4 Funding 2019-A, $11,000,000.00 (S)
$11,000,000.00 (U) evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
LLC
$11,000,000.00 (T) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
The Juneau Group filed identical $11,000,000 secured claims against each of the
$0.00 (A) Debtor entities. No basis for the claims is provided. See proof of claim no. 952-2.
Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group, LLC $0.00 (S)
Kabbage Canada Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
9 11/28/2022 952-2 $11,000,000.00 (S) $0.00 (P)
Holdings, LLC evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
$11,000,000.00 (U) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
$11,000,000.00 (T) documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
The Juneau Group filed identical $11,000,000 secured claims against each of the
$0.00 (A) Debtor entities. No basis for the claims is provided. See proof of claim no. 953-2.
Based on a review of the Debtors’ books and records, the Debtors have determined the
The Juneau Group, LLC Kabbage Asset $0.00 (S)
Juneau Group is a borrower of a PPP Loan that the Debtors service, there is no
10 11/28/2022 953-2 Securitization, $11,000,000.00 (S) $0.00 (P) evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
LLC $11,000,000.00 (U) under section 506 of the Bankruptcy Code. Further, the Juneau Group provides no
$11,000,000.00 (T) documentation in support of the claims, and the total value of the Juneau Group’s PPP
Loan is only $2,223.
2
RLF1 28611784V.1
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