Exhibit A: Proposed Order — Case 22-10951-CTG, Doc 1053-2, Filed 09/30/24
- Date
- 2024-09-30
Summary
Exhibit A in In re: KServicing Wind Down Corp., et al., Chapter 11 Case No. 22-10951 (CTG), in the United States Bankruptcy Court for the District of Delaware: a proposed order sustaining KServicing Wind Down Corporation's third (substantive) omnibus objection to certain proofs of claim, marked PPP borrower claims, filed September 30, 2024 as Doc 1053-2. The proposed order would disallow and expunge in their entirety each claim listed on Schedule 1, recites jurisdiction under 28 U.S.C. §§ 157 and 1334 and venue under 28 U.S.C. §§ 1408 and 1409, and preserves the right to object on other grounds. It provides that a response to any claim makes that claim a separate contested matter under Bankruptcy Rule 9014. The nine-page exhibit attaches Schedule 1, a table of claimants with claim dates, claim numbers, amounts and the stated basis for objection.
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“Exhibit A: Proposed Order — Case 22-10951-CTG, Doc 1053-2, Filed 09/30/24.”
Original at storage.courtlistener.com, dated 2024-09-30. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-09-30-kservicing-bankruptcy/
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Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 1 of 9
EXHIBIT A
Proposed Order
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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re: Chapter 11
KServicing Wind Down Corp., et al.,1 Case No. 22-10951 (CTG)
Post-Confirmation Debtors. (Jointly Administered)
Re: Docket No. ___
ORDER SUSTAINING KSERVICING WIND DOWN CORPORATION’S THIRD
(SUBSTANTIVE) OMNIBUS OBJECTION TO CERTAIN
PROOFS OF CLAIMS [PPP BORROWER CLAIMS]
Upon the third omnibus objection (the “Objection”) of KServicing Wind Down
Corporation (“KServicing WD”), for entry of an order (this “Order”) sustaining the Objection and
disallowing and expunging in their entirety the Claims set forth in Schedule 1 attached hereto, and
this Court having jurisdiction to consider the Objection pursuant to 28 U.S.C. §§ 157 and 1334 and
the Amended Standing Order of Reference from the United States District Court for the District of
Delaware, dated February 29, 2012; and this Court being able to issue a final order consistent with
Article III of the United States Constitution; and venue of these Chapter 11 Cases and the Objection
in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and this matter being a core
proceeding pursuant to 28 U.S.C. § 157(b); and this Court having found that proper and adequate
notice of the on and the relief requested therein has been provided in accordance with the
Bankruptcy Rules and the Local Rules, and that, except as otherwise ordered herein, no other or
further notice is necessary; and responses (if any) to the Objection having been withdrawn,
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: KServicing Wind Down Corp. (f/k/a Kabbage, Inc. d/b/a KServicing) (3937); KServicing
Wind Down Canada Holdings LLC (f/k/a Kabbage Canada Holdings, LLC) (N/A); KServicing Wind Down Asset
Securitization LLC (f/k/a Kabbage Asset Securitization LLC) (N/A); KServicing Wind Down Asset Funding 2017-A
LLC (f/k/a Kabbage Asset Funding 2017-A LLC) (4803); KServicing Wind Down Asset Funding 2019-A LLC (f/k/a
Kabbage Asset Funding 2019-A LLC) (8973); and KServicing Wind Down Diameter LLC (f/k/a Kabbage Diameter,
LLC) (N/A). The Debtors’ mailing and service address is 925B Peachtree Street NE, Suite 383, Atlanta, GA 30309.
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resolved or overruled on the merits; and a hearing having been held to consider the relief requested
in the Objection and upon the record of the hearing and all of the proceedings had before this
Court; and this Court having found and determined that the relief set forth in this Order is in the
best interests of the Debtors and their estates; and that the legal and factual bases set forth in the
Objection establish just cause for the relief granted herein; and after due deliberation and sufficient
cause appearing therefore;
IT IS HEREBY ORDERED THAT:
1. The Objection is SUSTAINED as set forth herein.
2. Each Claim set forth in Schedule 1 attached hereto is disallowed and
expunged in its entirety.
3. This Order has no res judicata, estoppel, or other effect on the validity,
allowance, or disallowance of, and all rights to object to or defend on any basis are expressly
reserved with respect to any claims referenced or identified in the Objection that is not listed on
Schedule 1 attached hereto.
4. KServicing WD’s right to object on any other grounds that KServicing
WD discovers is preserved.
5. To the extent a response is filed regarding any claim, each such claim, and
the Objection as it pertains to such claim, will constitute a separate contested matter as
contemplated by Bankruptcy Rule 9014. This Order will be deemed a separate order with respect
to each claim. Any stay of this Order pending appeal by any claimants whose claims are subject
to this Order shall only apply to the contested matter that involves such claimant and shall not act
to stay the applicability and/or finality of this Order with respect to the other contested matters
listed in the Objection or this Order.
2
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6. KServicing WD is authorized and empowered to execute and deliver such
documents, and to take and perform all actions necessary to implement and effectuate the relief
granted in this Order.
7. Nothing in this Order or the Objection is intended or shall be construed as
a waiver of any of the rights KServicing WD may have to enforce rights of setoff against the
claimants.
8. Nothing in the Objection or this Order, nor any actions or payments made
by KServicing WD pursuant to this Order, shall be construed as: (a) an admission as to the amount
of, basis for, or validity of any claim against KServicing WD under the Bankruptcy Code or other
applicable non-bankruptcy law; (b) a waiver of the KServicing WD or any other party in interest’s
right to dispute any claim; (c) a promise or requirement to pay any particular claim; (d) an
implication or admission that any particular claim is of a type specified or defined in this Order;
(e) an admission as to the validity, priority, enforceability, or perfection of any lien on, security
interest in, or other encumbrance on property of KServicing WD or the Debtors’ estates; or (f) a
waiver of any claims or causes of action which may exist against any entity under the Bankruptcy
Code or any other applicable law.
9. This Order is immediately effective and enforceable, notwithstanding the
possible applicability of Bankruptcy Rule 6004(h) or otherwise.
10. This Court shall retain jurisdiction with respect to any matters, claims,
rights or disputes arising from or related to the Objection or the implementation of this Order.
3
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Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 5 of 9
Schedule 1
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Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 6 of 9
Name of Claimant Claim Date Filed Claim Number Debtor Claim Amount Reason for Disallowance
The SBA, not Debtor, is responsible for any
2 Brothers Electric LLC 12/2/2022 C951-191 KServicing $4,000.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
7100 Sharks Inc 12/6/2022 C951-209 KServicing $2,256.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Abdulhadi, Mohammad 11/28/2022 C951-84 KServicing $5,561.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Aceves, Carlos 12/10/2022 C951-215 KServicing $63,490.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Alech Consultants LLC 11/23/2022 C951-48 KServicing $6,500.19
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Alech Consultants LLC 11/30/2022 C951-138 KServicing $13,501.43
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Ali, Emad 11/28/2022 C951-59 KServicing $2,137.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Ali, Wisam Abd 11/28/2022 C951-67 KServicing $2,988.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Alsyden LLC 11/30/2022 C951-159 KServicing $23,777.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
AMR Trucking LLC 11/28/2022 C951-115 KServicing $9,778.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
AREP II SA Hotel, LLC 11/30/2022 C951-166 KServicing $100,118.55
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Armaga VR, Incorporated 11/29/2022 C951-117 KServicing $100,000.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Armaga Vr, Incorporated 12/1/2022 C951-189 KServicing $100,000.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
At Your Service, Ltd 11/30/2022 C951-175 KServicing $20,833.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Austral Salon, Inc 11/28/2022 C951-61 KServicing $92,034.79
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
AVDN Enterprise LLC 12/30/2022 C951-224 KServicing $3,125.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Barauskas, Algis V 12/5/2022 C951-201 KServicing $7,316.82
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bastidas, Fernando 11/3/2022 C951-5 KServicing $21,337.47
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bastidas, Tatiana 11/3/2022 C951-6 KServicing $21,337.47
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bell, Marco Antonio 11/30/2022 C951-154 KServicing $45,076.86
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bell, Marco Antonio 11/30/2022 C951-145 KServicing $45,076.86
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bellows, Jason 11/30/2022 C951-151 KServicing $6,400.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Benchmark Construction, Inc. 11/30/2022 C951-164 KServicing $122,215.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bendehhane, Abdelatti 11/28/2022 C951-86 KServicing $5,742.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Berglund, Keith W 11/9/2022 C951-22 KServicing $25,000.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Best Sister Friends Catering and Events LLC 11/25/2022 C951-58 KServicing $21,120.34
Forgiveness Determination.
1
Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 7 of 9
Name of Claimant Claim Date Filed Claim Number Debtor Claim Amount Reason for Disallowance
The SBA, not Debtor, is responsible for any
Blue Star Cafe 11/28/2022 C951-62 KServicing $6,898.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bright Rainbow LLC 11/28/2022 C951-60 KServicing $72,467.90
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Brim, Andrea B 1/17/2023 C951-230 KServicing
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Brummer, Roland 12/19/2022 C951-219 KServicing $6,888.92
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Bryant, Alicia 11/18/2022 C951-41 KServicing $3,466.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Built by Brenda, Inc 12/1/2022 C951-187 KServicing $14,000.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Canfield, Catherine 11/23/2022 C951-44 KServicing $20,833.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Carr, Jason R 11/21/2022 C951-36 KServicing $18,392.93
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Carr, Jason R 11/25/2022 C951-50 KServicing $11,600.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Christensen, Paul 10/31/2022 C951-18 KServicing $5,511.00
claimant has no monetary damages.
Claimant's PPP loan has been forgiven and
Clemons, Carol P. 12/1/2022 C951-188 KServicing $2,480.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Clifton, Robert 11/30/2022 C951-173 KServicing $19,000.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Clutter Control, LLC 11/30/2022 C951-179 KServicing $50.00
claimant has no monetary damages.
Claimant's PPP loan has been forgiven and
Clutter Control, LLC 11/30/2022 C951-178 KServicing $50.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Concrete Images Inc. 11/30/2022 C951-148 KServicing $51,062.34
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Coram Deo Solutions - Stephen Hinson 11/30/2022 C951-163 KServicing $8,505.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Creative Property Preservation Inc 4/18/2023 C951-251 KServicing $273,750.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Creative Property Preservation Inc 11/29/2022 C951-74 KServicing $273,750.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
D & N Sizzle LLC (Natasha Palmer) 11/30/2022 C951-171 KServicing $13,122.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
DeJuan Ford (Edward Ford Services) 11/30/2022 C951-161 KServicing $24,200.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Demeire, Katia 11/3/2022 C951-7 KServicing $21,337.46
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
DiFonso, Jessica R. 11/18/2022 C951-34 KServicing $10,708.83
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Dinish, Anthony 11/28/2022 C951-185 KServicing
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Durable Goods Inc. 11/30/2022 C951-150 KServicing $50,398.43
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
EMH of Larsen, Inc. 11/30/2022 C951-169 KServicing $46,000.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Evans, Lakina 10/29/2022 C951-3 KServicing $3,216.00
Forgiveness Determination.
2
Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 8 of 9
Name of Claimant Claim Date Filed Claim Number Debtor Claim Amount Reason for Disallowance
The SBA, not Debtor, is responsible for any
Evans, Lakina 10/29/2022 C951-4 KServicing $3,216.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Everlast Construction, LLC 11/30/2022 C951-177 KServicing $8,511.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Feliz, Nicolas E 11/8/2022 C951-23 KServicing $886.49
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Foster, Kelvin 1/23/2023 C951-231 KServicing $3,000.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Garber, Lauren 11/30/2022 C951-153 KServicing $17,700.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Gaskins, Betty 11/19/2022 C951-35 KServicing $20,000.00
claimant has no monetary damages.
Claimant's PPP loan has been forgiven and
Gaston, Jonna 11/28/2022 C951-94 KServicing $400.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
George James Mallios, PC 12/5/2022 C951-196 KServicing $209,816.08
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
George James Mallios, PC 12/5/2022 C951-207 KServicing $209,816.08
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
George James Mallios, PC 12/10/2022 C951-216 KServicing $209,816.08
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
George Pullen DBA Three Strand Designs 11/29/2022 C951-104 KServicing $21,225.03
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Gomez, Yanelys 12/6/2022 C951-205 KServicing $3,600.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Hameed, Mohammed 11/28/2022 C951-83 KServicing $4,017.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Hare, Christine L. 11/29/2022 C951-93 KServicing $4,818.77
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Hassan, Salam AL 11/28/2022 C951-72 KServicing $2,011.00
Forgiveness Determination.
Hatton Property Management Inc., d/b/a Hatton The SBA, not Debtor, is responsible for any
11/29/2022 C951-98 KServicing $25,577.21
Landscape Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Hesnawi, Falah 11/28/2022 C951-64 KServicing $6,212.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Hexis Consulting LLC 11/28/2022 C951-56 KServicing $5,982.81
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
HO, QUANG 2/13/2023 C951-235 KServicing $7,000.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Holden, Jennifer 11/30/2022 C951-160 KServicing $40,312.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Ibrahim, Shapol 11/28/2022 C951-119 KServicing $3,811.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
IFR Investment Inc 11/28/2022 C951-66 KServicing $2,500.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Infinite Consulting Empire, LLC 11/30/2022 C951-167 KServicing $124,308.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Ismaeel, Omar 11/28/2022 C951-101 KServicing $2,703.00
claimant has no monetary damages.
Claimant's PPP loan has been forgiven and
Jackson, LaKecia 11/30/2022 C951-135 KServicing $1,500.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Jallette, John J 12/17/2022 C951-221 KServicing $6,795.11
Forgiveness Determination.
3
Case 22-10951-CTG Doc 1053-2 Filed 09/30/24 Page 9 of 9
Name of Claimant Claim Date Filed Claim Number Debtor Claim Amount Reason for Disallowance
The SBA, not Debtor, is responsible for any
James, LaKeysha 1/17/2023 C951-229 KServicing $12,708.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Jean, Gardy 11/23/2022 C951-53 KServicing $27,302.65
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Jennifer Pullen DBA Paramount Enterprises LLC 11/29/2022 C951-100 KServicing $21,094.36
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Johannsen, Paul 11/29/2022 C951-96 KServicing $22,039.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
John Harris Co. Inc 11/30/2022 C951-172 KServicing $16,654.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Joud Janna LLC 11/28/2022 C951-102 KServicing $3,282.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Kadada, LLC 1/5/2023 C951-226 KServicing $22,000.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Kadhum, Abbas 11/28/2022 C951-71 KServicing $1,451.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Karmic Currency Inc 11/30/2022 C951-157 KServicing $13,763.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Koenig, Tiffany 12/1/2022 C951-190 KServicing $21,022.79
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Kokah, Margaret 2/16/2023 C951-240 KServicing $45,835.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Lance Thompson / 365 SUN LLC 11/30/2022 C951-129 KServicing $12,500.00
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Landers, Thomas 11/16/2022 C951-32 KServicing
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Langerman, Jack 11/29/2022 C951-110 KServicing $30,833.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
LeanCog, Inc 11/30/2022 C951-132 KServicing $77,442.78
Forgiveness Determination.
Claimant's PPP loan has been forgiven and
Lebovics, Joshua 11/29/2022 C951-125 KServicing $10,402.00
claimant has no monetary damages.
The SBA, not Debtor, is responsible for any
Lenoir, Ida 1/9/2023 C951-227 KServicing $4,420.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
LGA IT Solutions 12/1/2022 C951-181 KServicing $4,700.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
L'Torah, Bais Medrash 11/29/2022 C951-112 KServicing $44,611.00
Forgiveness Determination.
The SBA, not Debtor, is responsible for any
Lupino, Gina 11/30/2022 C951-168 KServicing $4,500.00
Forgiveness Determination.
4
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