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Declaration of David A. Brown, Alston & Bird — In re Kabbage

Summary

The Declaration and Disclosure Statement of David A. Brown, a partner of Alston & Bird LLP, filed December 2, 2022 as Doc 317 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. It is submitted under the order authorizing the debtors to employ ordinary course professionals and states that the firm serves as special litigation counsel responding to civil subpoenas served on the debtors. It lists hourly rates of $1,080 per hour and $900 per hour for the two principal attorneys, states that the debtors owe the firm $0.00 for prepetition services, and states that the firm holds no interest adverse to the debtors on these matters. Exhibit A lists the parties in interest searched for conflicts. The objection deadline is December 16, 2022.

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                  Case 22-10951-CTG              Doc 317         Filed 12/02/22       Page 1 of 5




                               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         Obj. Deadline: December 16, 2022 at 4:00 p.m. (ET)

    DECLARATION AND DISCLOSURE STATEMENT OF DAVID A. BROWN, ON
                   BEHALF OF ALSTON & BIRD LLP

                    I, David A. Brown, hereby declare, pursuant to section 1746 of title 28 of the

United States Code, that the following is true to the best of my knowledge, information, and

belief:

                    1.       I am a Partner of Alston & Bird LLP located at The Atlantic Building, 950

F Street, NW, Washington, DC 20004-1404 (the “Firm”).

                    2.       This declaration (the “Declaration”) is submitted in accordance with the

Order Pursuant to 11 U.S.C. §§ 105(a), 327, and 330 Authorizing Debtors to Employ

Professionals Used in Ordinary Course of Business [Docket No. 196] (the “OCP Order”).

Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed

to such terms in the OCP Order.

                    3.       Kabbage, Inc. d/b/a KServicing and its debtor affiliates, as debtors and

debtors in possession (collectively, the “Debtors”), have requested that the Firm provide legal

services to the Debtors, and the Firm has consented to provide such services. The Firm is a legal


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.

              Case 22-10951-CTG           Doc 317     Filed 12/02/22     Page 2 of 5




services firm. The Debtors engage the Firm on discrete matters from time to time. Currently, the

Firm serves as special litigation counsel to the Debtors in order to respond to civil subpoenas

served on the Debtors.

               4.        The Firm has provided services to the Debtors prior to Petition Date.

               5.        On a monthly basis, the Firm will bill the Debtors for services provided on

an hourly basis, plus reimbursement of actual, necessary expenses and other charges incurred by

the Firm. The rates, which are set forth herein, are subject to periodic adjustments to reflect

economic and other conditions and are consistent with rates charged nationally. The principal

attorneys presently expected to represent the Debtors are: David A. Brown (Dave), a partner, who

bills at the hourly rate of $1,080 per hour and Leah Fiorenza McNeill, a partner, who bills at the

hourly rate of $900 per hour. These rates are consistent with the rates the Firm charges other

clients.

               6.        The Firm may have performed services in the past and may perform services

in the future, in matters unrelated to these chapter 11 cases, for persons who are parties in interest

in the Debtors’ chapter 11 cases. As part of its customary practice, the Firm is retained in cases,

proceedings, and transactions involving many different parties, some of whom may represent or

be claimants or employees of the Debtors, or other parties-in-interest in these chapter 11 cases.

The Firm does not perform services for any such person in connection with these chapter 11 cases.

In addition, the Firm does not have any relationship with any such person, its attorneys, or

accountants that would be adverse to the Debtors or their estates with respect to the matters on

which the Firm is to be retained, except as set forth herein.




                                                  2

              Case 22-10951-CTG          Doc 317       Filed 12/02/22    Page 3 of 5




               7.      Neither I, nor any principal of, or professional employed by the Firm has

agreed to share or will share any portion of the compensation to be received from the Debtors with

any other person other than the principals and regular employees of the Firm.

               8.      Neither I, nor any principal of, or professional employed by the Firm,

insofar as I have been able to ascertain, holds or represents any interest adverse to the Debtors or

their estates, with respect to the matters on which the Firm is to be retained.

               9.      The Debtors owe the Firm $0.00 for prepetition services.

               10.     For purposes of making the disclosures herein, the Firm searched the list of

parties in interest attached hereto as Exhibit A in its conflict check system.

               11.     As of the Petition Date, the Firm was not party to an agreement for

indemnification with the Debtors.

               12.     The Firm is conducting further inquiries regarding its retention by any

creditors of the Debtors, and upon conclusion of that inquiry, or at any time during the period of

its employment, if the Firm should discover any facts bearing on the matters described herein, the

Firm will supplement the information contained in this Declaration.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on: December 1, 2022




                                              By:

                                                      David A. Brown




                                                  3

Case 22-10951-CTG   Doc 317    Filed 12/02/22   Page 4 of 5




                     EXHIBIT A

               List of Parties in Interest

            Case 22-10951-CTG         Doc 317     Filed 12/02/22    Page 5 of 5




   1. Debtors                                      5. Former Officers and Directors (if
                                                      available) (3 years)
   (1) Kabbage, Inc.
   (2) Kabbage Asset Securitization LLC            (1) Daniel Scott Eidson
   (3) Kabbage Asset Funding 2017-A LLC            (2) Jon Hoffman
   (4) Kabbage Asset Funding 2019-A LLC            (3) Julia McCullough
   (5) Kabbage Canada Holdings, LLC                (4) Kathryn Petralia
   (6) Kabbage Diameter, LLC                       (5) Kimberly Withrow
                                                   (6) L. Scott Askins
   2. Non-Debtor Affiliates and                    (7) Marc Gorlin
      Subsidiaries                                 (8) Oneal Bhambani
                                                   (9) Robert Frohwein
   (1) Kabbage Financial Services Limited          (10) Spencer Robinson
       (UK entity)                                 (11) Troy Deus
   (2) Kabbage India Private Limited (India
       entity)                                     6. Debtors Professionals

   3. Debtors’ Trade Names and Aliases             (1) AlixPartners, LLP
                                                   (2) Greenberg Traurig, LLP
   (1) d/b/a KServicing                            (3) Jones Day
   (2) d/b/a KServicing Corp.                      (4) Omni Agent Solutions
   (3) d/b/a KServicing, Inc.                      (5) Richards, Layton & Finger, P.A.
                                                   (6) Weil, Gotshal & Manges LLP
   4. Current Officers and Directors

Officers                                           7. Opposing Parties (Third Party
                                                      Subpoenas)
   (1) David Walker
   (2) Donna Evans                                 (1) Cole Ratias
   (3) Salim Kafiti                                (2) Radius Intelligence, Inc.
   (4) Holly Loiseau                               (3) Fwix, Inc.
   (5) Ian Cox
   (6) Laquisha Milner

Directors

   (1) Eric Hartz (d/b/a Corporate Hartz,
       LLC)
   (2) Laquisha Milner
   (3) Lawrence X. Taylor
   (4) Robin Gregg
Independent Manager

   (1) John Hebert




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