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
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:
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.
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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
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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.
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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.
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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.
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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
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