KServicing - Jones Day Third Interim and Final Fee Application
- Date
- 2023-07-20
Summary
Exhibit K, filed July 20, 2023 as Doc 916-12 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. It is the certification of Daniel J. Merrett, a partner at Jones Day, in support of the firm's third interim and final fee application as special counsel, covering a final fee period from October 3, 2022 through June 20, 2023. The certification states that the application complies with the Interim Compensation Order [Dkt. 136], the U.S. Trustee Guidelines and Local Rules 2016-1 and 2016-2. It reports that Jones Day voluntarily determined that $29,315.00 in fees should not be charged to the Debtors. Answering six U.S. Trustee Guidelines questions, it states that rate increases effective January 1, 2023 raised the compensation sought by $8,700.00.
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Case 22-10951-CTG Doc 916-12 Filed 07/20/23 Page 1 of 4
EXHIBIT K
Certification of Daniel J. Merrett
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Case 22-10951-CTG Doc 916-12 Filed 07/20/23 Page 2 of 4
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)
:
: (Jointly Administered)
Debtors.1 :
: Obj. Deadline: August 10, 2023 at 4:00 p.m.
: Hearing Date: August 22, 2023 at 1:00 p.m.
------------------------------------------------------------ x
CERTIFICATION OF DANIEL J. MERRETT IN SUPPORT
OF THIRD INTERIM AND FINAL FEE APPLICATION OF JONES DAY
1. I am a partner with the applicant firm, Jones Day (the “Applicant”). I
make this certification regarding the Applicant’s third interim and final fee application
(the “Application”) for payment of compensation and reimbursement of expenses for the periods
April 1, 2023 through and including June 20, 2023 (the “Third Interim Fee Period”) and
October 3, 2022 through and including June 20,2023 (the “Final Fee Period”) to certify to certain
matters addressed in the Order Establishing Procedures for Interim Compensation and
Reimbursement of Expenses of Professionals [Dkt. 136] (the “Interim Compensation Order”).2
2. Pursuant to the Interim Compensation Order, the Court authorized the
Applicant to file this Application, which has been prepared in accordance with the procedures set
forth in both the Interim Compensation Order and the Guidelines for Reviewing Applications for
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 but not otherwise defined have the meanings given to them in the Interim
Compensation Order.
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Case 22-10951-CTG Doc 916-12 Filed 07/20/23 Page 3 of 4
Compensation and Reimbursement of Expenses Filed under 11 U.S.C. § 330 by Attorneys in
Larger Chapter 11 Cases, effective November 1, 2013 (the “U.S. Trustee Guidelines”).
3. I have reviewed the Application, including each Monthly Fee Application
relating to the Third Interim Fee Period and Final Fee Period covered by the Application, and I
hereby certify that such application comply with the Interim Compensation Order and the
applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, and the Local Rules.
Moreover, I have reviewed Local Rules 2016-1 and 2016-2, and submit that this Interim Fee
Application complies with such rules.
Disclosures Pursuant to the U.S. Trustee Guidelines
4. The Court authorized the Debtors to retain the Applicant as special
counsel in these chapter 11 cases pursuant to an order entered on November 2, 2022 [Dkt. 198].
5. Seven professionals performed services during the Third Interim Fee
Period. Of those seven professionals, five professionals billed fewer than fifteen hours during
the Third Interim Fee Period.
6. The Applicant discussed its rates, fees, and staffing plan with the Debtors
at the outset of its engagement and throughout these cases.
7. Consistent with its own internal policies and to comply with the
“reasonableness” requirements of section 330 of the Bankruptcy Code, Jones Day has reviewed
its monthly service descriptions and expense detail and has determined that certain fees should
not be charged to the Debtors. In particular, Jones Day has voluntarily determined that
$29,315.00 in fees should not be charged to the Debtors. This Application reflects that
adjustment.
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Case 22-10951-CTG Doc 916-12 Filed 07/20/23 Page 4 of 4
Statement of the Applicant
8. Pursuant to section C5 of the U.S. Trustee Guidelines, the Applicant
responds to the questions identified therein as follows:
Question 1: Did Jones Day agree to any variations from, or alternatives to, Jones Day’s
standard or customary billing rates, fees or terms for services pertaining to this
engagement that were provided during the Interim Fee Period? If so, please explain.
Answer: No.
Question 2: If the fees sought in the Interim Fee Application as compared to the fees
budgeted for the Interim Fee Period are higher by 10% or more, did Jones Day discuss
the reasons for the variation with the client?
Answer: Not applicable.
Question 3: Have any of the professionals included in the Interim Fee Application
varied their hourly rate based on geographic location of the bankruptcy case?
Answer: No.
Question 4: Does the Interim Fee Application include time or fees related to reviewing
or revising time records or preparing, reviewing or revising invoices?
Answer: Except as previously disclosed in the Monthly Fee Applications,
this Application does not include any time or fees related to reviewing, revising or
preparing invoices.
Question 5: Does the Interim Fee Application include time or fees for reviewing time
records to redact any privileged or other confidential information? If so, please quantify
hours and fees.
Answer: No.
Question 6: Does the Interim Fee Application include any rate increases since Jones
Day’s retention in these cases?
Answer: Yes. The Interim Fee Application includes annual rate increases
effective as of January 1, 2023, which were disclosed to the Debtors. These rate
changes increased the amount of compensation sought in this Interim Fee
Application over 2022 rates by $8,700.00.
Dated: July 20, 2023 /s/ Daniel J. Merrett
Daniel J. Merrett
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