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Motion for Order Amending Case Caption — In re Kabbage

Summary

A motion filed July 20, 2023 as Doc 910 in In re Kabbage, Inc. d/b/a KServicing, et al., Case No. 22-10951 (CTG), jointly administered Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The Post-Confirmation Debtors ask the court to enter an order amending the case caption under section 105(a) of the Bankruptcy Code, Bankruptcy Rules 1005 and 2002 and Local Rule 9004-1. The motion states that the plan became effective on June 20, 2023 and that the debtors then changed their corporate names, including Kabbage Inc. to KServicing Wind Down Corp. It proposes a new caption reading In re KServicing Wind Down Corp., et al. and asks that the Clerk of Court update the ECF system. The seven-page motion is signed by Morris James LLP and Perkins Coie LLP, sets an objection deadline of August 3, 2023 and a hearing on August 22, 2023.

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                Case 22-10951-CTG              Doc 910       Filed 07/20/23        Page 1 of 7




                       IN THE UNITED STATES BANKRUPTCY COURT
                            FOR THE DISTRICT OF DELAWARE

In re:                                                    Chapter 11

KABBAGE, INC. d/b/a KSERVICING, et al.,1                  Case No. 22-10951 (CTG)

                       Debtors.                           (Jointly Administered)

                                                          Obj. Deadline: August 3, 2023 at 4:00 p.m. (ET)
                                                          Hearing Date: August 22, 2023 at 1:00 p.m. (ET)

             MOTION OF THE POST-CONFIRMATION DEBTORS FOR ENTRY OF
                        AN ORDER AMENDING CASE CAPTION

         The post-confirmation Debtors (the “Post-Confirmation Debtors”), operating as the Wind

Down Estates as defined in, and under terms of, the Amended Joint Chapter 11 Plan of Liquidation

of Kabbage, Inc. (d/b/a KServicing) and Its Affiliated Debtors, dated March 9, 2023 [Docket No.

627] (as amended, modified, or supplemented in accordance with its terms), file this motion (the

“Motion”) for the entry of an order, substantially in the form attached to this Motion as Exhibit A

(the “Proposed Order”), pursuant to section 105(a) of title 11 of the United States Code (the

“Bankruptcy Code”), rules 1005 and 2002 of the Federal Rules of Bankruptcy Procedure (the

“Bankruptcy Rules”), and rule 9004-1 of the Local Rules of Bankruptcy Practice and Procedure

of the United States Bankruptcy Court for the District of Delaware (the “Local Rules”), authorizing

the Post-Confirmation Debtors to amend the caption used in these jointly administered chapter 11

cases. In support of this Motion, the Post-Confirmation Debtors respectfully represent as follows:




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). The Debtors’ mailing and service address is 925B Peachtree Street NE,
Suite 383, Atlanta, GA 30309.




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              Case 22-10951-CTG           Doc 910      Filed 07/20/23     Page 2 of 7




                                 JURISDICTION AND VENUE

         1.    The United States Bankruptcy Court for the District of Delaware (the “Court”) has

jurisdiction over this matter 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. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). The Debtors

confirm their consent, pursuant to Rule 7008 of the Bankruptcy Rules and Rule 9013-1(f) of the

Local Rules, to the entry of a final order by the Court in connection with this Motion to the extent

that it is later determined that the Court, absent consent of the parties, cannot enter final orders or

judgments in connection herewith consistent with Article III of the United States Constitution.

         2.    Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

         3.    The bases for the relief requested herein are section 105(a) of the Bankruptcy Code,

Bankruptcy Rules 1005 and 2002, and Local Rule 9004-1.

                                         BACKGROUND

         4.    On October 3, 2022 (the “Petition Date”), the above-captioned debtors

(collectively, the “Debtors”) filed voluntary petitions for relief under chapter 11 of the Bankruptcy

Code in the Court.

         5.    On March 9, 2023, the Debtors filed the Amended Joint Chapter 11 Plan of

Liquidation of Kabbage, Inc., (d/b/a KServicing) and Its Affiliated Debtors) (the “Plan”) [Docket

No. 627].

         6.    On March 15, 2023, this Court entered the Order Confirming Amended Joint

Chapter 11 Plan of Liquidation of Kabbage, Inc. (d/b/a KServicing) and its Affiliated Debtors

[Docket No. 680].




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         7.       On June 20, 2023 the Plan became effective, See Docket No. 870, Notice of (I)

Entry of Order Confirming Amended Joint Chapter 11 Plan of Liquidation of Kabbage, Inc. (d/b/a

KServicing) and its Affiliated Debtors and (II) Effective Date.

         8.        Under the Plan, the Post-Confirmation Debtors may change their corporate name.

Specifically, Section 5.5 of the Plan provides that:

                         Upon the Effective Date, by virtue of entry of the
                         Confirmation Order, all actions contemplated by this Plan
                         (including any action to be undertaken by the Wind Down
                         Officer) shall be deemed authorized, approved, and, to the
                         extent taken prior to the Effective Date, ratified without any
                         requirement for further action by holders of Claims or
                         Interests, the Debtors, or any other Entity or Person. All
                         matters provided for in this Plan involving the corporate
                         structure of the Debtors, and any corporate action required
                         by the Debtors in connection therewith, shall be deemed to
                         have occurred and shall be in effect as of the Effective Date,
                         without any requirement of further action by the Debtors or
                         the Estates.

Plan, § 5.5.

             9.   Following the Plan’s Effective Date, the Debtors filed the necessary documentation

with the appropriate division of the Delaware Secretary of State to change each of their corporate

names as follows: the corporate names of (i) Kabbage Inc., (ii) Kabbage Canada Holdings LLC,

(iii) Kabbage Asset Securitization LLC, (iv) Kabbage Assest Funding 2017-A LLC, (v) Kabbage

Asset Funding 2019-A LLC, and (vi) Kabbage Asset Diameter LLC have been amended to

(a) KServicing Wind Down Corp., (b) KServicing Wind Down Canada Holdings LLC,

(c) KServicing Wind Down Asset Securitization LLC, (d) KServicing Wind Down Asset Funding

2017-A LLC, (e) KServicing Wind Down Asset Funding 2019-A LLC, and (f) KServicing Wind

Down Diameter LLC, respectively.




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                                     RELIEF REQUESTED

         10.   By this Motion, the Post-Confirmation Debtors request that the Court enter the

Proposed Order authorizing the Post-Confirmation Debtors to amend the caption used in these

jointly administered chapter 11 cases. Additionally, the Post-Confirmation Debtors request that

this Court authorize the Clerk of the United States Bankruptcy Court for the District of Delaware

(the “Clerk of Court”) and other parties in interest to take whatever actions are necessary to update

the ECF filing system and their respective records to reflect the name changes, including the

insertion of a docket entry in these jointly administered chapter 11 cases announcing the change

of corporate names of the Debtors.

                              BASIS FOR RELIEF REQUESTED

         11.   Bankruptcy Rules 1005 and 2002 and Local Rule 9004-1 set forth the information

required to be contained in the caption of all Court filings. This information includes the name of

the debtor. See Bankruptcy Rules 1005, 2002(n); Local Rule 9004-1. Local Rule 9004-1(c) further

provides that the case caption may only be modified by order entered by the Court on a separate

motion filed and served in accordance with the Local Rules. See Local Rule 9004-1(c). Section

105(a) of the Bankruptcy Code empowers a bankruptcy court to issue “any order, process, or

judgment that is necessary or appropriate to carry out the provisions of” the Bankruptcy Code

11 U.S.C. § 105(a). The purpose of section 105 of the Bankruptcy Code is to ensure the bankruptcy

court has the power “to take whatever action is appropriate or necessary in aid of the exercise of

[its] jurisdiction.” 2 Collier on Bankruptcy 105.01 (Alan N. Resnick & Henry J. Sommer eds.,

16th ed. 2019).

         12.   Amendment of the case caption as set forth herein is necessary and appropriate

under the circumstances. As noted above, under Section 5.5 of the Plan the Post-Confirmation

Debtors were authorized to change their corporate name, See Plan § 5.5. Following the Plan’s


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                Case 22-10951-CTG            Doc 910        Filed 07/20/23     Page 5 of 7




Effective Date, the Post- Confirmation Debtors filed the necessary documentation with the

appropriate division of the Delaware Secretary of State to change each of their corporate names as

follows: the corporate names of (i) Kabbage Inc., (ii) Kabbage Canada Holdings LLC, (iii)

Kabbage Asset Securitization LLC, (iv) Kabbage Assest Funding 2017-A LLC, (v) Kabbage Asset

Funding 2019-A LLC, and (vi) Kabbage Asset Diameter LLC have been amended to

(a) KServicing Wind Down Corp., (b) KServicing Wind Down Canada Holdings LLC,

(c) KServicing Wind Down Asset Securitization LLC, (d) KServicing Wind Down Asset Funding

2017-A LLC, (e) KServicing Wind Down Asset Funding 2019-A LLC, and (f) KServicing Wind

Down Diameter LLC, respectively. However, the Post-Confirmation Debtors require entry of the

Proposed Order to amend the case caption used in these jointly administered chapter 11 cases to

reflect these name changes. Accordingly, the relief requested in this motion is consistent with

implementation of the Plan.

         13.     In light of the foregoing, the Post-Confirmation Debtors respectfully request that

 the Court approve an amended case caption in the form set forth below to reflect the Debtors’

 new corporate names in accordance with the provisions of the Plan and the Local Rules:

                       IN THE UNITED STATES BANKRUPTCY COURT
                            FOR THE DISTRICT OF DELAWARE

In re:                                                    Chapter 11

KServicing Wind Down Corp., et al.,                       Case No. 22-10951 (CTG)

                Post-Confirmation Debtors                 (Jointly Administered)


    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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               Case 22-10951-CTG          Doc 910      Filed 07/20/23     Page 6 of 7




                                              NOTICE

         14.   Notice of this Motion has been or will be provided to: (a) the Office of the U.S.

Trustee; (b) the United States Attorney’s Office for the District of Delaware; (c) the Internal

Revenue Service; (d) the state attorneys general for all states in which the Debtors conduct business

or have conducted business; and (e) any party that requests service pursuant to Bankruptcy

Rule 2002. The Debtors submit that, in light of the nature of the relief requested, no other or further

notice need be given.

                                      NO PRIOR REQUEST

         15.   No previous request for the relief requested herein has been made to this or any

other court.

                           [Remainder of Page Intentionally Left Blank]




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                                        CONCLUSION

               WHEREFORE, the Post-Confirmation Debtors respectfully request that the Court

enter the Proposed Order, substantially in the form attached here as Exhibit A, granting the relief

requested in the Motion and such other and further relief as may be just and proper.


Dated: July 20, 2023                         MORRIS JAMES LLP

                                             /s/ Brya M. Keilson
                                             Eric J. Monzo (DE Bar No. 5214)
                                             Brya M. Keilson (DE Bar No. 4643)
                                             Tara C. Pakrouh (DE Bar No. 6192)
                                             500 Delaware Avenue, Suite 1500
                                             Wilmington, DE 19801
                                             Telephone: (302) 888-6800
                                             Facsimile: (302) 571-1750
                                             E-mail: emonzo@morrisjames.com
                                             E-mail: bkeilson@morrisjames.com
                                             E-mail: tpakrouh@morrisjames.com

                                             and

                                             PERKINS COIE LLP
                                             Bradley A. Cosman (admitted pro hac vice)
                                             Kathleen Allare (admitted pro hac vice)
                                             2901 North Central Avenue, Suite 2000
                                             Phoenix, AZ 85012-2788
                                             Telephone: (602) 351-8000
                                             Facsimile: (602) 648-7000
                                             E-mail: BCosman@perkinscoie.com
                                             E-mail: KAllare@perkinscoie.com

                                             and

                                             John D. Penn (admitted pro hac vice)
                                             500 North Akard Street, Suite 3300
                                             Dallas, TX 75201-3347
                                             Telephone: (214) 965-7700
                                             Facsimile: (214) 965-7799
                                             E-mail: JPenn@perkinscoie.com

                                             Counsel to the Post-Confirmation Debtors,
                                             operating as the Wind Down Estates



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