Schedule of Misclassified Administrative Expense Claims — In re Kabbage

Summary

Schedule 2, Misclassified Administrative Expense Claims, filed 02/17/23 as Doc 546-2 in the Chapter 11 cases of Kabbage, Inc. d/b/a KServicing, Case 22-10951-CTG. For each claimant it lists the claim number, the misclassified administrative claim amount, the modified classification status and the reason for reclassification. For each entry the Debtors state that, based on a review of their books and records, the claimant is a borrower of a PPP Loan or a Legacy Loan the Debtors service, and that there is no evidence of the Debtors receiving goods from the claimant within the twenty days prior to the Petition Date, as section 503(b)(9) of the Bankruptcy Code requires. Entries include George James Mallios, PC, three claims each asserting $209,816.08, and The Juneau Group, LLC, a $499,999.99 claim that the Debtors say has no supporting documentation and a PPP Loan of only $2,223.

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Full text

RLF1 28611784V.1
Schedule 2

Misclassified Administrative Expense Claims

Case 22-10951-CTG    Doc 546-2    Filed 02/17/23    Page 1 of 4

RLF1 28611784V.1
Misclassified Administrative Expense Claims1
(Claims are listed alphabetically)
#
Claimant Name
Date Claim
Filed
Claim
No.
Debtor Name
Misclassified
Administrative
Claim Amount
Modified Classification
Status2
Reason for Reclassification
1
Best Sister Friends Catering and
Events LLC
11/25/2022
951-58
Kabbage, Inc.
d/b/a KServicing
$21,120.34 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$21,120.34 (U)
$21,120.34 (T)
Best Sister filed a $21,120.34 administrative expense claim pursuant to section
503(b)(9) of the Bankruptcy Code.  The proof of claim asserts “money loaned” as the
basis for the claim.  See proof of claim no. 951-58.  Based on a review of the Debtors’
books and records, the Debtors have determined Best Sister is a borrower of a PPP
Loan that the Debtors service, and there is no evidence of the Debtors receiving goods
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.
2
Carlos Aceves
12/10/2022
951-215
Kabbage, Inc.
d/b/a KServicing
$1,549.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$63,490.00 (U)
$63,490.00 (T)
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
503(b)(9) of the Bankruptcy Code.  The proof of claim asserts “loan was approved
f[or] $63,490 after months a deposit of $1,590” as the basis for the claim.  See
proof of claim no. 951-215.  Based on a review of the Debtors’ books and records,
the Debtors have determined Carlos Aceves is a borrower of a PPP Loan that the
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.
3
Charmaine Busch
11/5/2022
951-27
Kabbage, Inc.
d/b/a KServicing
$30,000.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$30,000.00 (U)
$30,000.00 (T)
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 . . .”
as the basis for the claim. See proof of claim no. 951-27. Based on a review of the
Debtors’ books and records, the Debtors have determined Charmaine Busch is a
borrower of a Legacy Loan that the Debtors service, and there is no evidence of the
Debtors receiving goods from Charmaine Busch within the twenty days prior to the
Petition Date, in the ordinary course, as required by section 503(b)(9) of the
Bankruptcy Code.
4
Deborah A Mastrandrea
11/15/2022
951-30
Kabbage, Inc.
d/b/a KServicing
$3,900.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$3,900.00 (U)
$3,900.00 (T)
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
loaned” as the basis for the claim. See proof of claim no. 951-30. Based on a
review of the Debtors’ books and records, the Debtors have determined Deborah A.
Mastrandrea is a borrower of a PPP loan that the Debtors service, and there is no
evidence of the Debtors receiving goods from Deborah A. Mastrandrea within the
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.
Case 22-10951-CTG    Doc 546-2    Filed 02/17/23    Page 2 of 4

2
RLF1 28611784V.1
#
Claimant Name
Date Claim
Filed
Claim
No.
Debtor Name
Misclassified
Administrative
Claim Amount
Modified Classification
Status2
Reason for Reclassification
5
George James Mallios, PC
12/5/2022
951-196
Kabbage, Inc.
d/b/a KServicing
$209,816.08 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$209,816.08 (U)
$209,816.08 (T)
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
claim assert “failure to provide forgiveness” as the basis for the claim.  See proof of
claim no. 951-196.  Based on a review of the Debtors’ books and records, the Debtors
have determined George Mallios is a borrower of a PPP Loan that the Debtors service,
and there is no evidence of the Debtors receiving goods from George 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.
6
George James Mallios, PC
12/5/2022
951-207
Kabbage, Inc.
d/b/a KServicing
$209,816.08 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$209,816.08 (U)
$209,816.08 (T)
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 claim assert “failure to provide forgiveness” as the basis for the claim.
See proof of claim no. 951-207.  Based on a review of the Debtors’ books and records,
the Debtors have determined George Mallios is a borrower of a PPP Loan that the
Debtors service, and there is no evidence of the Debtors receiving goods from George
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.
7
George James Mallios, PC
12/10/2022
951-216
Kabbage, Inc.
d/b/a KServicing
$209,816.08 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$209,816.08 (U)
$209,816.08 (T)
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
claim assert “failure to provide forgiveness” as the basis for the claim.  See proof of
claim no. 951-216.  Based on a review of the Debtors’ books and records, the Debtors
have determined George Mallios is a borrower of a PPP Loan that the Debtors service,
and there is no evidence of the Debtors receiving goods from George 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.
8
Kelvin Foster
01/23/2023
951-231
Kabbage, Inc.
d/b/a KServicing
$2,000.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$3,000.00 (U)
$3,000.00 (T)
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
the Bankruptcy Code.  The proof of claim asserts “goods sold” as the basis for the
claim.  See proof of claim no. 951-231.  Based on a review of the Debtors’ books and
records, the Debtors have determined Kelvin Foster is a borrower of a PPP Loan that
the Debtors service, and there is no evidence of the Debtors receiving goods from
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.
9
Madel Carmen Hernandez dba
TODO PARA TU PACHANG
11/3/2022
951-15
Kabbage, Inc.
d/b/a KServicing
$32,000.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$32,000.00 (U)
$32,000.00 (T)
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
for the claim. See proof of claim no. 951-15. Based on a review of the Debtors’
books and records, the Debtors have determined Madel Hernandez is a borrower of
a Legacy Loan that the Debtors service, and there is no evidence of the Debtors
receiving goods from Madel Hernandez within the twenty days prior to the Petition
Date, in the ordinary course, as required by section 503(b)(9) of the Bankruptcy
Code.
Case 22-10951-CTG    Doc 546-2    Filed 02/17/23    Page 3 of 4

3
RLF1 28611784V.1
#
Claimant Name
Date Claim
Filed
Claim
No.
Debtor Name
Misclassified
Administrative
Claim Amount
Modified Classification
Status2
Reason for Reclassification
10
Paula Roach
12/5/2022
951-208
Kabbage, Inc.
d/b/a KServicing
$112,770.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$112,770.00 (U)
$112,770.00 (T)
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
claim assert “failure to provide forgiveness” as the basis for the claim.  See proof of
claim no. 951-208.  Based on a review of the Debtors’ books and records, the Debtors
have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
and there is no evidence of the Debtors receiving goods from Paula Roach within the
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
11
Paula Roach
12/5/2022
951-210
Kabbage, Inc.
d/b/a KServicing
$112,770.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$112,770.00 (U)
$112,770.00 (T)
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
claim assert “failure to provide forgiveness” as the basis for the claim.  See proof of
claim no. 951-210.  Based on a review of the Debtors’ books and records, the Debtors
have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
and there is no evidence of the Debtors receiving goods from Paula Roach within the
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
12
Paula Roach
12/7/2022
951-214
Kabbage, Inc.
d/b/a KServicing
$112,770.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$112,770.00 (U)
$112,770.00 (T)
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
claim assert “failure to provide forgiveness” as the basis for the claim.  See proof of
claim no. 951-214.  Based on a review of the Debtors’ books and records, the Debtors
have determined Paula Roach is a borrower of a PPP Loan that the Debtors service,
and there is no evidence of the Debtors receiving goods from Paula Roach within the
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
13
Randolph Redley
11/30/2022
951-136
Kabbage, Inc.
d/b/a KServicing
$16,248.00 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$16,248.00 (U)
$16,248.00 (T)
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
forgiveness” as the basis for the claim. See proof of claim no. 951-136. Based on
a review of the Debtors’ books and records, the Debtors have determined
Randolph Redley is a borrower of a PPP Loan that the Debtors service, and there is
no evidence of the Debtors receiving goods from Randolph Redley within the
twenty days prior to the Petition Date, in the ordinary course, as required by section
503(b)(9) of the Bankruptcy Code.
14
The Juneau Group, LLC
11/28/2022
951-184
Kabbage, Inc.
d/b/a KServicing
$499,999.99 (A)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$499,999.99 (U)
$499,999.99 (T)
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
“TIME” as the basis for the claim.  See proof claim no. 951-184.  Based on a review of
the Debtors’ books and records, the Debtors have determined the Juneau Group is a
borrower of a PPP Loan that the Debtors service, and there is no evidence of the
Debtors receiving goods from the Juneau Group within the twenty days prior to the
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.
Case 22-10951-CTG    Doc 546-2    Filed 02/17/23    Page 4 of 4

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