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Second Amended Notice of Agenda for November 7, 2022 Hearing — In re Kabbage, Inc. (Bankr. D. Del.)

Summary

A second amended notice of agenda filed November 6, 2022 as Doc 215 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), in the U.S. Bankruptcy Court for the District of Delaware, for a hearing on November 7, 2022 at 1:00 p.m. before the Honorable Craig T. Goldblatt. It lists six resolved matters, including motions on employee wages and transfer restrictions and applications to retain Richards, Layton & Finger, P.A., Greenberg Traurig, LLP and Jones Day, each resolved by an order entered before the hearing. The cash management motion is continued to November 21, 2022. Two matters go forward: the Cash Collateral Motion, on an uncontested basis, and the Debtors' motion to approve a settlement agreement with Customers Bank, to which Cross River Bank filed an objection. The nine-page notice is signed by counsel for the Debtors.

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                   Case 22-10951-CTG             Doc 215         Filed 11/06/22       Page 1 of 9




                               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)
                                                             :
                                                             :
                  Debtors.   1
                                                             :         (Jointly Administered)
------------------------------------------------------------ x

         SECOND AMENDED 2 NOTICE OF AGENDA FOR HEARING SCHEDULED
          FOR NOVEMBER 7, 2022 AT 1:00 P.M. (PREVAILING EASTERN TIME),
          BEFORE THE HONORABLE CRAIG T. GOLDBLATT, AT THE UNITED
          STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

       THE HEARING WILL BE HELD IN-PERSON IN JUDGE GOLDBLATT’S
     COURTROOM. ALL PARTIES, INCLUDING WITNESSES, ARE EXPECTED TO
        ATTEND IN PERSON UNLESS PERMITTED TO APPEAR VIA ZOOM.
       APPEARANCES AT IN-PERSON COURT PROCEEDINGS USING ZOOM ARE
     ALLOWED ONLY IN THE FOLLOWING CIRCUMSTANCES: (I) A PARTY WHO
        FILES A RESPONSIVE PLEADING INTENDS TO MAKE ONLY A LIMITED
      ARGUMENT; (II) A PARTY WHO HAS NOT SUBMITTED A PLEADING BUT IS
    INTERESTED IN OBSERVING THE HEARING; (III) A PARTY WHO HAS A GOOD
     FAITH HEALTH-RELATED REASON AND HAS OBTAINED PERMISSION FROM
      JUDGE GOLDBLATT’S CHAMBERS TO APPEAR REMOTELY, OR (IV) OTHER
     EXTENUATING CIRCUMSTANCES AS DETERMINED BY JUDGE GOLDBLATT.
                        IF YOU INTEND TO APPEAR VIA ZOOM, YOU ARE
                             REQUIRED TO REGISTER IN ADVANCE.
                PLEASE USE THE FOLLOWING ZOOM REGISTRATION LINK:
      https://debuscourts.zoomgov.com/meeting/register/vJItd-yurDIsHa_zQ1lBfH5kzNY2yjUsfFo




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
    Amended items appear in bold.


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I.       RESOLVED MATTERS:

1.       Motion of Debtors for Entry of Interim and Final Orders Establishing Notification
         Procedures and Approving Restrictions on Certain Transfers of Interests in the Debtors
         [Docket No. 6 – filed October 3, 2022]

         Objection/Response Deadline:           October 31, 2022, at 4:00 p.m. (ET)

         Objections/Responses Received:         None.

         Related Documents:

         i.        Interim Order Establishing Notification Procedures and Approving Restrictions
                   on Certain Transfers of Interests in the Debtors [Docket No. 71 – entered October
                   6, 2022]

         ii.       Notice of (A) Entry of Interim Order Establishing Notification Procedures and
                   Approving Restrictions on Certain Transfers of Interests in the Debtors; and
                   (B) Final Hearing Thereon [Docket No. 83 – filed October 6, 2022]

         iii.      Certificate of No Objection Regarding Motion of Debtors for Entry of Interim and
                   Final Orders Establishing Notification Procedures and Approving Restrictions on
                   Certain Transfers of Interests in the Debtors [Docket No. 187 – filed November 1,
                   2022]

         iv.       Final Order Establishing Notification Procedures and Approving Restrictions on
                   Certain Transfers of Interests in the Debtors [Docket No. 193 – entered November
                   2, 2022]

         Status: On November 2, 2022, the Court entered an order with respect to this matter.
                 Accordingly, a hearing with respect to this matter is no longer necessary.

2.       Motion of Debtors for Entry of Interim and Final Orders (I) Authorizing Debtors to
         (A) Pay Prepetition Wages, Salaries, Employee Benefits, and Other Compensation and
         (B) Maintain Employee Benefit Programs and Pay Related Obligations and (II) Granting
         Related Relief [Docket No. 10 – filed October 3, 2022]

         Objection/Response Deadline:           October 19, 2022, at 4:00 p.m. (ET); extended to
                                                October 31, 2022, at 4:00 p.m. (ET) for the relief
                                                sought in the Supplement (as defined below)

         Objections/Responses Received:

         A.        Informal comments received from the Office of the United States Trustee (the
                   “U.S. Trustee”)

         B.        Informal comments received from Morgan Franklin LLC



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         Related Documents:

         i.        Interim Order (I) Authorizing Debtors to (A) Pay Prepetition Wages, Salaries,
                   Employee Benefits, and Other Compensation and (B) Maintain Employee Benefit
                   Programs and Pay Related Obligations and (II) Granting Related Relief [Docket
                   No. 75 – entered October 6, 2022]

         ii.       Notice of (A) Entry of Interim Order (I) Authorizing Debtors to (A) Pay
                   Prepetition Wages, Salaries, Employee Benefits, and Other Compensation and
                   (B) Maintain Employee Benefit Programs and Pay Related Obligations and
                   (II) Granting Related Relief; and (B) Final Hearing Thereon [Docket No. 80 –
                   filed October 6, 2022]

         iii.      Supplement to the Motion of Debtors for Entry of Interim and Final Orders
                   (I) Authorizing Debtors to (A) Pay Prepetition Wages, Salaries, Employee
                   Benefits, and Other Compensation and (B) Maintain Employee Benefit Programs
                   and Pay Related Obligations and (II) Granting Related Relief [Docket No. 141 –
                   filed October 21, 2022] (the “Supplement”)

         iv.       Certification of Counsel Regarding Revised Proposed Final Order (I) Authorizing
                   Debtors to (A) Pay Prepetition Wages, Salaries, Employee Benefits, and Other
                   Compensation and (B) Maintain Employee Benefit Programs and Pay Related
                   Obligations and (II) Granting Related Relief [Docket No. 190 – Filed November
                   1, 2022]

         v.        Final Order (I) Authorizing Debtors to (A) Pay Prepetition Wages, Salaries,
                   Employee Benefits, and Other Compensation and (B) Maintain Employee Benefit
                   Programs and Pay Related Obligations and (II) Granting Related Relief [Docket
                   No. 194 – entered November 2, 2022]

         Status: On November 2, 2022, the Court entered an order with respect to this matter.
                 Accordingly, a hearing with respect to this matter is no longer necessary.

3.       Application of Debtors to Retain and Employ Richards, Layton & Finger, P.A. as Co-
         Counsel to the Debtors Effective as of Petition Date [Docket No. 46 – filed October 4,
         2022]

         Objection/Response Deadline:          October 19, 2022, at 4:00 p.m. (ET); extended by
                                               agreement to October 31, 2022 at 4:00 p.m. for the
                                               U.S. Trustee

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         Related Documents:

         i.        Notice of Application and Hearing [Docket No. 51 – filed October 5, 2022]

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         ii.       Supplemental Declaration of Daniel J. DeFranceschi in Support of Application of
                   Debtors to Retain and Employ Richards, Layton & Finger, P.A. as Co-Counsel to
                   the Debtors Effective as of Petition Date [Docket No. 170 – filed October 27,
                   2022]

         iii.      Certification of Counsel Regarding Revised Proposed Order Authorizing
                   Retention and Employment of Richards, Layton & Finger, P.A. as Co-Counsel to
                   the Debtors Effective as of Petition Date [Docket No. 171 – filed October 27,
                   2022]

         iv.       Order Authorizing Retention and Employment of Richards, Layton & Finger,
                   P.A. as Co-Counsel to the Debtors Effective as of Petition Date [Docket No. 175
                   – entered October 28, 2022]

         Status: On October 28, 2022, the Court entered an order resolving this matter.
                 According, a hearing with respect to this matter is no longer necessary.

4.       Application of Debtors for Authority to Employ and Retain Greenberg Traurig, LLP as
         Special Counsel to the Board of Directors of Kabbage, Inc. d/b/a KServicing Effective as
         of the Petition Date [Docket No. 107 – filed October 14, 2022]

         Objection/Response Deadline:          October 31, 2022, at 4:00 p.m. (ET)

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         Related Documents:

         i.        Supplemental Declaration of David B. Kurzweil of Greenberg Traurig, LLP
                   [Docket No. 177 – filed November 1, 2022]

         ii.       Certification of Counsel Regarding Revised Proposed Order Authorizing Debtors
                   to Employ and Retain Greenberg Traurig, LLP as Special Counsel to the Board of
                   Directors of Kabbage, Inc. d/b/a KServicing Effective as of the Petition Date
                   [Docket No. 192 – filed November 1, 2022]

         iii.      Order Authorizing Debtors to Employ and Retain Greenberg Traurig, LLP as
                   Special Counsel to the Board of Directors of Kabbage, Inc. d/b/a KServicing
                   Effective as of the Petition Date [Docket No. 197 – entered November 2, 2022]

         Status: On November 2, 2022, the Court entered an order with respect to this matter.
                 Accordingly, a hearing with respect to this matter is no longer necessary.




                                                  4
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5.       Application of Debtors for Authority to Employ and Retain Jones Day as Special Counsel
         to the Debtors Effective as of the Petition Date [Docket No. 108 – filed October 14,
         2022]

         Objection/Response Deadline:           October 31, 2022, at 4:00 p.m. (ET)

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         Related Documents:

         i.        Supplemental Declaration of Andrew E. Lelling in Support of Debtors’
                   Application to Employ and Retain Jones Day as Special Counsel to the Debtors
                   Effective as of the Petition Date [Docket No. 162 – filed October 26, 2022]

         ii.       Certification of Counsel Regarding Revised Proposed Order Authorizing Debtors
                   to Employ and Retain Jones Day as Special Counsel to the Debtors Effective as of
                   the Petition Date [Docket No. 189 – filed November 1, 2022]

         iii.      Order Authorizing Debtors to Employ and Retain Jones Day as Special Counsel
                   to the Debtors Effective as of the Petition Date [Docket No. 198 – entered
                   November 2, 2022]

         Status: On November 2, 2022, the Court entered an order with respect to this matter.
                 Accordingly, a hearing with respect to this matter is no longer necessary.

6.       Motion of Debtors for Authority to Employ Professionals Used in Ordinary Course of
         Business [Docket No. 110 – filed October 17, 2022]

         Objection/Response Deadline:           October 31, 2022, at 4:00 p.m. (ET)

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         Related Documents:

         i.        Certification of Counsel Regarding Order Authorizing Debtors to Employ
                   Professionals Used in Ordinary Course of Business [Docket No. 188 – filed
                   November 1, 2022]

         ii.       Order Authorizing Debtors to Employ Professionals Used in Ordinary Course of
                   Business [Docket No. 196 – entered November 2, 2022]

         Status: On November 2, 2022, the Court entered an order with respect to this matter.
                 Accordingly, a hearing with respect to this matter is no longer necessary.



                                                   5
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II.      CONTINUED MATTER:

7.       Motion of Debtors for Entry of Interim and Final Orders (I) Authorizing Debtors to
         (A) Continue Using Existing Cash Management System, Bank Accounts, and Business
         Forms, (B) Implement Changes to Cash Management in the Ordinary Course of
         Business; and (II) Granting Related Relief [Docket No. 12 – filed October 3, 2022]

         Objection/Response Deadline:           October 31, 2022, at 4:00 p.m. (ET)

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         Related Documents:

         i.        Emergency Bridge Order Authorizing Debtors’ Postpetition Use of Cash
                   Management System on an Interim Basis Pending a Further Hearing [Docket No.
                   43 – entered October 4, 2022]

         ii.       Interim Order (I) Authorizing (A) Debtors to Continue Using Existing Cash
                   Management System, Bank Accounts, and Business Forms, (B) Implement
                   Changes to Cash Management in the Ordinary Course of Business; and
                   (II) Granting Related Relief [Docket No. 78 – entered October 6, 2022]

         iii.      Notice of (A) Entry of Interim Order (I) Authorizing (A) Debtors to Continue
                   Using Existing Cash Management System, Bank Accounts, and Business Forms,
                   (B) Implement Changes to Cash Management in the Ordinary Course of Business;
                   and (II) Granting Related Relief; and (B) Final Hearing Thereon [Docket No. 84 –
                   filed October 26, 2022]

         iv.       Certification of Counsel Regarding Second Interim Order (I) Authorizing
                   (A) Debtors to Continue Using Existing Cash Management System, Bank
                   Accounts, and Business Forms, (B) Implement Changes to Cash Management in
                   the Ordinary Course of Business; and (II) Granting Related Relief [Docket No.
                   191 – filed November 1, 2022]

         v.        Second Interim Order (I) Authorizing (A) Debtors to Continue Using Existing
                   Cash Management System, Bank Accounts, and Business Forms, (B) Implement
                   Changes to Cash Management in the Ordinary Course of Business; and
                   (II) Granting Related Relief [Docket No. 195 – entered November 2, 2022]

         Status: The hearing with respect to this matter has been continued to November 21, 2022
                 at 1:00 p.m. (ET).




                                                   6
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III.     MATTERS GOING FORWARD:

8.       Motion of Debtors for Entry of Order (I) Authorizing Debtors’ Limited Use of Cash
         Collateral, (II) Granting Adequate Protection to Secured Lender, (III) Modifying
         Automatic Stay, and (IV) Granting Related Relief [Docket No. 143 – filed October 24,
         2022] (the “Cash Collateral Motion”)

         Objection/Response Deadline:          October 31, 2022, at 4:00 p.m. (ET); extended by
                                               agreement to November 4, 2022, at 4:00 p.m. (ET)
                                               for Synovus Financial Corp. (“Synovus”)

         Objections/Responses Received:

         A.        Informal comments received from the U.S. Trustee

         B.        Informal comments received from Cross River Bank (“CRB”)

         C.        Informal comments received from Synovus

         D.        Informal comments received from the Small Business Association (the “SBA”)

         Related Documents:

         i.        Notice of Filing Revised Proposed Order Under 11 U.S.C. §§ 105, 361, 362, and
                   363, and Bankruptcy Rules 2002, 4001, 6004, and 9014 (I) Authorizing Debtors
                   to Use Cash Collateral and (II) Granting Adequate Protection to Secured Lender
                   [Docket No. 208 – filed November 4, 2022]

         Witness Information:

         i.        The Debtors may offer the Declaration of Deborah Rieger-Paganis, which was
                   filed as Exhibit B to the Cash Collateral Motion.

         Status: The Debtors have resolved all informal comments to the relief requested in the
                 motion and filed a revised proposed form of order reflecting such
                 resolutions. The hearing with respect to this matter will go forward on an
                 uncontested basis.

9.       Debtors’ Motion for Entry of an Order (I) Authorizing and Approving Settlement
         Agreement Between Debtors and Customers Bank and (II) Granting Related Relief
         [Docket No. 172 – filed October 28, 2022]

         Objection/Response Deadline:          November 4, 2022, at 4:00 p.m. (ET)




                                                  7
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         Objections/Responses Received:

         A.        Cross River Bank’s Objection to Debtors’ Motion for Entry of an Order
                   (I) Authorizing and Approving the Settlement Agreement Between KServicing
                   and Customers Bank and (II) Granting Related Relief [Docket No. 206 – filed
                   November 4, 2022]

         Related Documents:

         i.        Order Shortening Notice and Objection Periods for Debtors’ Motion for Entry of
                   an Order (I) Authorizing and Approving Settlement Agreement Between Debtors
                   and Customers Bank and (II) Granting Related Relief [Docket No. 174 – entered
                   October 28, 2022]

         ii.       Declaration of Laquisha Milner in Support of Debtor’s Motion for Entry of
                   an Order (I) Authorizing and Approving the Settlement Agreement Between
                   KServicing and Customers Bank and (II) Granting Related Relief [Docket
                   No. 211 – filed November 6, 2022]

         iii.      Debtors’ Reply in Support of Debtor’s Motion for Entry of an Order
                   (I) Authorizing and Approving the Settlement Agreement Between
                   KServicing and Customers Bank and (II) Granting Related Relief [Docket
                   No. 213 – filed November 6, 2022]

         iv.       Debtors’ Motion for Leave to File Debtors’ Reply in Support of Debtor’s
                   Motion for Entry of an Order (I) Authorizing and Approving the Settlement
                   Agreement Between KServicing and Customers Bank and (II) Granting
                   Related Relief [Docket No. 214 – filed November 6, 2022]

         Witness Information:

         i.        Debtors’ Witness List for November 7, 2022 Hearing [Docket No. 204 – filed
                   November 4, 2022]

         ii.       Cross River Bank’s Witness and Exhibit List for November 7, 2022 at 1:00 p.m.
                   (Eastern time) Hearing Concerning Debtors’ Motion for Entry of an Order
                   (I) Authorizing and Approving the Settlement Agreement Between KServicing
                   and Customers Bank and (II) Granting Related Relief [Docket No. 207 – filed
                   November 4, 2022]

         Exhibit Information:

         i.        Debtors’ Exhibit List for November 7, 2022 Hearing [Docket No. 212 – filed
                   November 6, 2022]

         Status: The hearing with respect to this matter will go forward.




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Dated: November 6, 2022
       Wilmington, Delaware
                                       /s/ Amanda R. Steele
                                       RICHARDS, LAYTON & FINGER, P.A.
                                       Daniel J. DeFranceschi, Esq. (No. 2732)
                                       Amanda R. Steele, Esq. (No. 5530)
                                       Zachary I. Shapiro, Esq. (No. 5103)
                                       Matthew P. Milana, Esq. (No. 6681)
                                       One Rodney Square
                                       920 North King Street
                                       Wilmington, Delaware 19801
                                       Telephone: (302) 651-7700
                                       E-mail: defranceschi@rlf.com
                                               steele@rlf.com
                                               shapiro@rlf.com
                                               milana@rlf.com


                                       -and-

                                       WEIL, GOTSHAL & MANGES LLP
                                       Ray C. Schrock, P.C. (admitted pro hac vice)
                                       Candace M. Arthur, Esq. (admitted pro hac vice)
                                       Natasha S. Hwangpo, Esq. (admitted pro hac vice)
                                       Chase A. Bentley, Esq. (admitted pro hac vice)
                                       767 Fifth Avenue
                                       New York, New York 10153
                                       Telephone: (212) 310-8000
                                       E-mail:       ray.schrock@weil.com
                                                     candace.arthur@weil.com
                                                     natasha.hwangpo@weil.com
                                                     chase.bentley@weil.com

                                       Attorneys for Debtors
                                       and Debtors in Possession




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