Kabbage - COC re Order to Enforce CUBI Settlement
- Date
- 2023-03-27
Summary
Exhibit 2, a blackline filed March 27, 2023 as Doc 730-2 in the jointly administered Chapter 11 cases of Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware. It marks changes to a proposed Order Enforcing the Settlement Order and the Settlement Agreement Between KServicing and Customers Bank, entered on the Debtors' motion under Section 105(a) of the Bankruptcy Code. The revised text refers to an evidentiary hearing on March 20, 2023 and a decision read into the record on March 22, 2023. As revised, the proposed order would adjudge Customers Bank to owe $1,555,656.00 as further payment, set the total Settlement Payment at $22,055,340.00, and direct payment within three business days, while preserving the Debtors' right to seek sanctions by separate motion.
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Case 22-10951-CTG Doc 730-2 Filed 03/27/23 Page 1 of 4
EXHIBIT 2
Blackline
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Case 22-10951-CTG Doc 730-2 Filed 03/27/23 Page 2 of 4
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE 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 NoNos. __340-342, 356, 358, 359,
670, 671, 672
:
------------------------------------------------------------ x
ORDER ENFORCING THE SETTLEMENT ORDER AND THE SETTLEMENT
AGREEMENT BETWEEN KSERVICING AND CUSTOMERS BANK
Upon the motion2 (the “Motion”)2 of the above-captioned debtors and debtors-in-
possession (the “Debtors”) for entry of an order, pursuant to Section 105(a) of title 11 of the
United States Code (the “Bankruptcy Code”), among other things, enforcing the Court’s Order
Authorizing and Approving the Settlement Agreement Between KServicing and Customers Bank
and Granting Related Relief [Docket No. 232] (the “Settlement Order”) and the Settlement
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 herein and not otherwise defined shall have the meanings given to them
in the Motion of Debtors for Entry of an Order Enforcing the Settlement Order and the Settlement
Agreement Between KServicing and Customers Bank, (Dec. 7, 2022) (“Motion”) [Docket No. 340]
and Debtors’ Reply in Further Support of Motion of Debtors for Entry of an Order Enforcing the
Settlement Order and the Settlement Agreement Between KServicing and Customers Bank
(“Reply”) [Docket No. 670].
2 Capitalized terms used herein and not otherwise defined shall have the meanings given to them
in the Motion.
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Case 22-10951-CTG Doc 730-2 Filed 03/27/23 Page 3 of 4
Agreement and ordering CB to pay the Unpaid Amount to the Debtors, all as set forth more fully
in the Motion; and ; and in consideration of the Motion and the requested relief being a core
proceeding pursuant to 28 U.S.C. § 157(b)(2); and the Debtors and Customers Bank (“CB”)
having consented to entry of a final order by this Court under Article III of the United States
Constitution; and venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409;
and appropriate notice of and the opportunity for a hearing on the Motion having been given; and
the relief requested in the Motion being in the best interests of the Debtors’ estatesCourt having
held an evidentiary hearing on March 20, their creditors and other parties in interest2023; and the
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;
NOW, THEREFORE, IT IS HEREBY ORDERED THAT:
1. The Motion is GRANTED to the extent set forth herein.
2.CB is hereby found in breach of the Settlement Agreement and adjudged to owe the Unpaid Amount
to the Debtors.
1. For the reasons set forth in the decision read into the record by this Court
on March 22, 2023, the Motion is GRANTED as set forth herein. All other aspects of that Motion
2
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Case 22-10951-CTG Doc 730-2 Filed 03/27/23 Page 4 of 4
have been withdrawn and are no longer controverted as set forth on the record at the Motion
hearing on March 20, 2023.
2. CB is hereby found and adjudged to owe the amount of $1,555,656.00 to
the Debtors as further payment of the Settlement Payment under the Settlement Order, and the
total Settlement Payment is therefore determined to be $22,055,340.00.
3. CB is directed to and shall, within five (5three (3) business days of entry of
this Order, pay the Unpaid Amount $1,555,656.00 to the Debtors. Such payment shall be made in
accordance with payment instructions to be provided by the Debtors.
4. The Debtors’ right to seek sanctions in connection with the matters set forth
in the Motion and this Order, including attorneys’ fees, are hereby preserved in full. The Debtors
shall seek any such relief by separate motion.
4. 5.This Court retains exclusive jurisdiction to hear and determine all matters
arising from or related to the implementation, interpretation, and enforcement of this Order.
3
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