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Notice Of Third Interim And Final Fee

Summary

Doc 916, filed July 20, 2023 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, is a notice of the third interim and final fee application of Jones Day as special counsel to the Debtors. The application seeks $77,497.50 in compensation and $37,079.98 in expenses for April 1, 2023 through June 20, 2023, and $335,542.50 in compensation and $241,372.90 in expenses for October 3, 2022 through June 20, 2023. It summarizes the first and second interim fee applications and three monthly applications for the third interim period. Objections are due August 10, 2023 at 4:00 p.m., with a hearing set for August 22, 2023 before Judge Craig T. Goldblatt. The notice lists attached compensation and expense summaries, a budget, a staffing plan and a certification, and is signed by Daniel J. Merrett of Jones Day.

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                Case 22-10951-CTG              Doc 916           Filed 07/20/23     Page 1 of 6




                             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)
                                   1
                        Debtors.                             :
                                                             :      Obj. Deadline: August 10, 2023 at 4:00 p.m.
                                                             :      Hearing Date: August 22, 2023 at 1:00 p.m.
------------------------------------------------------------ x

                NOTICE OF THIRD INTERIM AND FINAL FEE
             APPLICATION OF JONES DAY FOR ALLOWANCE OF
            COMPENSATION FOR SERVICES RENDERED AND FOR
           REIMBURSEMENT OF EXPENSES AS SPECIAL COUNSEL
           TO THE DEBTORS FOR THE (I) THIRD INTERIM PERIOD
           OF APRIL 1, 2023 THROUGH JUNE 20, 2023 AND (II) FINAL
      COMPENSATION PERIOD OF OCTOBER 3, 2022 THROUGH JUNE 20, 2023

Name of Applicant:                                         Jones Day

Authorized to Provide Professional Services to: Debtors and Debtors-in-Possession

Date of Retention:                                         November 2, 2022, effective as of
                                                           October 3, 2022
Interim period for which compensation and
reimbursement are sought:                                  April 1, 2023 through June 20, 2023
                                                           (the “Third Interim Fee Period”)

Amount of interim compensation sought as
actual, reasonable, and necessary:                         $77,497.50

Amount of interim expense reimbursement
sought as actual, reasonable, and necessary:               $37,079.98

Final period for which compensation and
reimbursement are sought:                                  October 3, 2022 through June 20, 2023
                                                           (the “Final Fee Period”)


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.



                                                        -1-

                Case 22-10951-CTG    Doc 916     Filed 07/20/23   Page 2 of 6



Amount of final compensation sought as actual,
reasonable, and necessary:                     $335,542.50

Amount of final expense reimbursement sought
as actual, reasonable, and necessary:        $241,372.90


This is a(n):     monthly   X interim    X final application




                                           -2-

                                     Case 22-10951-CTG             Doc 916        Filed 07/20/23        Page 3 of 6




                                        SUMMARY OF PRIOR INTERIM FEE APPLICATIONS

                                                           First Interim Fee Application

                                                                Total Amount Requested                                 Total Amount Paid
     Date Filed /              Period Covered                   Fees           Expenses1                             Fees           Expenses
      Docket No.
February 14, 2023 /         October 3 –                       $188,987.50                 $153,582.18                $188,987.50               $153,582.18
Dkt. 534                    December 31, 2022
Total                                                         $188,987.50                 $153,582.18                $188,987.50               $153,582.18

                                                          Second Interim Fee Application

                                                                Total Amount Requested                                 Total Amount Paid
     Date Filed /              Period Covered                   Fees           Expenses2                             Fees           Expenses
      Docket No.
May 15, 2023 /              January 1 –                         $69,057.50                  $50,710.74                $69,057.50                $50,710.74
Dkt. 823                    March 31, 2023
Total                                                           $69,057.50                  $50,710.74                $69,057.50                $50,710.74




1
       Includes expenses paid in the amount of $147,803.75 for services provided by Forensic Risk Alliance, Inc. (“FRA”), Jones Day’s consultant with
       respect to the Federal Investigations. Consistent with the requirements of Local Rule 2016-2, copies of FRA’s invoices were attached as Exhibit C to
       the monthly fee applications.
2
       Includes expenses paid in the amount of $23,436.25 for services provided by FRA. Consistent with the requirements of Local Rule 2016-2, copies of
       FRA’s invoices were attached as Exhibit C to the monthly fee applications.



                                                                            -3-

                                    Case 22-10951-CTG             Doc 916       Filed 07/20/23       Page 4 of 6




                      SUMMARY OF MONTHLY APPLICATIONS FOR THE THIRD INTERIM PERIOD

                                         Total Amount                Total Amount Approved                     Total Amount                 Holdback
                                          Requested                    via Certificate of No                    Paid to Date
                                                                             Objection
  Date Filed /       Period            Fees         Expenses         Fees (80%)     Expenses                Fees          Expenses         Fees (20%)
  Docket No.        Covered                                                          (100%)
June 8, 2023 /     Apr. 1 –        $62,982.50        $17,657.40       $50,386.00    $17,657.40           $50,386.00        $17,657.40       $12,596.50
Dkt. 856           30, 2023

July 13, 2023      May 1 –         $10,565.00         $4,889.24          N/A               N/A                  $0.00            $0.00        $2,113.00
Dkt. 897           31, 2023
July 19, 2023      June 1 –         $3,950.00         $9,797.54          N/A               N/A                  $0.00            $0.00          $790.00
Dkt. 909           30, 2023

Summary of any objections to monthly applications: None3

Compensation and reimbursement sought in the Third Interim Fee Application not yet paid: $41,798.28




3
       The objection deadlines for the (a) Eighth Monthly Application of Jones Day, Special Counsel to the Debtors, for Allowance of Compensation for
       Services Rendered and for Reimbursement of Expenses for the Period From May 1, 2023 Through May 31, 2023 and (b) the Ninth Monthly Application
       of Jones Day, Special Counsel to the Debtors, for Allowance of Compensation for Services Rendered and for Reimbursement of Expenses for the Period
       From June 1, 2023 Through June 20, 2023 have not yet passed.



                                                                          -4-

              Case 22-10951-CTG              Doc 916        Filed 07/20/23       Page 5 of 6




               PLEASE TAKE NOTICE that Jones Day (the “Applicant”), special counsel to

the above-captioned debtors and debtors in possession (collectively, the “Debtors”) has today

filed this third interim and final application (the “Application”) for payment of compensation and

reimbursement of expenses for the period of (a) April 1, 2023 through June 20, 2023 (the “Third

Interim Fee Period”), and (b) October 3, 2022 through and including June 20, 2023 (the “Final

Fee Period”) pursuant to the Order Establishing Procedures for Interim Compensation and

Reimbursement of Expenses of Professionals [Dkt. 136] (the “Interim Compensation Order”)1

and the Order Confirming Amended Joint Chapter 11 Plan of Liquidation of Kabbage, Inc.

(d/b/a Kservicing) and Its Affiliated Debtors [Dkt. 680] (the “Confirmation Order”).

               PLEASE TAKE FURTHER NOTICE that, pursuant to the Interim

Compensation Order, objections, if any, to this Application must be filed with the Court and

served on the Applicant at the address set forth below and the Notice Parties so as to be actually

received by August 10, 2023 at 4:00 p.m. (prevailing Eastern Time).

               PLEASE TAKE FURTHER NOTICE that, if any objections to the Application

are received, the Application and such objections shall be considered at a hearing before the

Honorable Craig T. Goldblatt, United States Bankruptcy Judge, at the United States Bankruptcy

Court for the District of Delaware, 824 North Market Street, 3rd Floor, Courtroom 7,

Wilmington, Delaware 19801 on August 22, 2023 at 1:00 p.m.. (prevailing Eastern Time).

               PLEASE TAKE FURTHER NOTICE that, (a) attached hereto as Exhibit A is

the Applicant’s summary cover sheet of the Third Interim Fee Period, (b) attached hereto as

Exhibit B is a summary of compensation by each professional of the Applicant that worked on

the above-captioned chapter 11 cases during the Third Interim Fee Period, (c) attached hereto as

1
       Capitalized terms used but not otherwise defined herein have the meanings given to them in the Interim
       Compensation Order.



                                                      -5-

              Case 22-10951-CTG          Doc 916       Filed 07/20/23    Page 6 of 6




Exhibit C is a summary of compensation by each professional of the Applicant that worked on

the above-captioned chapter 11 cases during the Final Fee Period, (d) attached hereto as

Exhibit D is a summary of compensation by project category during the Third Interim Fee

Period, (e) attached hereto as Exhibit E is a summary of compensation by project category during

the Final Fee Period, (f) attached hereto as Exhibit F is an expense summary during the Third

Interim Fee Period, (g) attached hereto as Exhibit G is an expense summary during the Final Fee

Period, (h) attached hereto as Exhibit H are the Applicant’s customary and comparable

compensation disclosures, (i) attached hereto as Exhibit I is Applicant’s budget for the Third

Interim Fee Period, (j) attached hereto as Exhibit J is Applicant’s staffing plan for the Third

Interim Fee Period, and (k) attached hereto as Exhibit K is the Certification of Daniel J. Merrett

in support of the Third Interim and Final Fee Application.

               PLEASE TAKE FURTHER NOTICE that, if no timely objection is filed to the

Application, in accordance with the terms of the Interim Compensation Order, the Court may

enter an order granting the Application without a hearing.

Dated: July 20, 2023                            Respectfully submitted,
       Atlanta, Georgia
                                                /s/ Daniel J. Merrett
                                                Daniel J. Merrett (GA 924076)
                                                JONES DAY
                                                1221 Peachtree Street, N.E., Suite 400
                                                Atlanta, Georgia 30361
                                                Telephone: (404) 521-3939
                                                Facsimile: (404) 581.8330
                                                E-mail: djmerrett@jonesday.com

                                                ATTORNEYS FOR DEBTORS




                                                 -6-

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