Schedule of Misclassified Secured Claims — In re Kabbage

Summary

Schedule 3, Misclassified Secured Claims, Doc 546-3 filed February 17, 2023 in Case 22-10951-CTG, the Chapter 11 case of Kabbage, Inc. d/b/a KServicing, et al. The schedule lists claims alphabetically by claimant with the date filed, claim number, debtor name, the misclassified secured amount, the modified classification status and the Debtors' reason for reclassification. Among the entries, it states that The Juneau Group filed identical $11,000,000 secured claims against each of the Debtor entities with no basis provided, and that the Debtors determined The Juneau Group is a borrower of a PPP Loan that the Debtors service. It states that Kadada, LLC filed a $22,000 secured claim and Michael R. Hamlin filed a $500,000 secured claim, and that the Debtors found no basis for the claims' secured status under section 506 of the Bankruptcy Code.

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Full text

RLF1 28611784V.1
Schedule 3

Misclassified Secured Claims

Case 22-10951-CTG    Doc 546-3    Filed 02/17/23    Page 1 of 3

RLF1 28611784V.1
Misclassified Secured Claims1
(Claims are listed alphabetically)
#
Claimant Name
Date Claim
Filed
Claim
No.
Debtor Name
Misclassified
Secured Claim
Amount
Modified
Classification Status2
Reason for Reclassification
1
Anthony Dinish
11/28/2022
951-185
Kabbage, Inc.
d/b/a KServicing
$0.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$0.00 (U)
$0.00 (T)
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
no. 951-185. Based on a review of the Debtors’ books and records, the Debtors
have determined Anthony Dinish is a borrower of a PPP Loan that the Debtors
service, and there is no basis for the claim’s secured status under section 506 of the
Bankruptcy Code.
2
Kadada, LLC
1/5/2023
951-226
Kabbage, Inc.
d/b/a KServicing
$22,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$22,000.00 (U)
$22,000.00 (T)
Kadada filed a $22,000 secured claim. The proof of claim asserts “money loaned”
as the basis for the claim. See proof of claim no. 951-226. Based on a review of the
Debtors’ books and records, the Debtors have determined Kadada is a borrower of a
PPP Loan that the Debtors service, and there is no basis for the claim’s secured status
under section 506 of the Bankruptcy Code.
3
Michael R. Hamlin
11/12/2022
951-25
Kabbage, Inc.
d/b/a KServicing
$500,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$500,000.00 (U)
$500,000.00 (T)
Michael R. Hamlin filed a $500,000 secured claim.  The proof of claim asserts “a lien
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,
which is on file at the York County Registry of Deeds.  See proof of claim no. 951-25.
Based on a review of the Debtors’ books and records, the Debtors have determined
Michael R. Hamlin is a borrower of a Legacy Loan that the Debtors service, there is no
evidence of the alleged lien, and no basis for the claim’s secured status under section
506 of the Bankruptcy Code.
4
Summer Stegall
11/24/2022
951-49
Kabbage, Inc.
d/b/a KServicing
$42,023.65 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$42,023.65 (U)
$42,023.65 (T)
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
injury” as the basis for the claim.  See proof 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 is no basis for the claim’s
secured status under section 506 of the Bankruptcy Code.
5
The Juneau Group, LLC
11/28/2022
954-2
Kabbage Asset
Funding 2017-A,
LLC
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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. 954-2.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.

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.
Case 22-10951-CTG    Doc 546-3    Filed 02/17/23    Page 2 of 3

2
 RLF1 28611784V.1
#
Claimant Name
Date Claim
Filed
Claim
No.
Debtor Name
Misclassified
Secured Claim
Amount
Modified
Classification Status2
Reason for Reclassification
6
The Juneau Group LLC
11/28/2022
956-2
Kabbage
Diameter, LLC
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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. 956-2.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.
7
The Juneau Group, LLC
11/28/2022
951-91
Kabbage, Inc.
d/b/a KServicing
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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. 951-91.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.
8
The Juneau Group, LLC
11/28/2022
955-4
Kabbage Asset
Funding 2019-A,
LLC
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.
9
The Juneau Group, LLC
11/28/2022
952-2
Kabbage Canada
Holdings, LLC
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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. 952-2.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.
10
The Juneau Group, LLC
11/28/2022
953-2
Kabbage Asset
Securitization,
LLC
$11,000,000.00 (S)
$0.00 (A)
$0.00 (S)
$0.00 (P)
$11,000,000.00 (U)
$11,000,000.00 (T)
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. 953-2.
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, there is no
evidence of the Juneau Group’s claims, and no basis for the claims’ secured status
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.

Case 22-10951-CTG    Doc 546-3    Filed 02/17/23    Page 3 of 3

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