Motion Of Post-Confirmation Debtors, For An Order Terminating
Summary
A motion filed July 26, 2023 as Doc 928 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, by the Post-Confirmation Debtors operating the Wind Down Estates. It asks for an order terminating Omni Agent Solutions, Inc. as claims and noticing agent effective July 26, 2023. The background recounts the October 3, 2022 petition date, Omni's employment order entered October 6, 2022, the November 30, 2022 bar date, plan confirmation on March 15, 2023 and the plan's effective date of June 20, 2023. The motion asks that Omni turn over claims records and the claims register to Stretto, Inc. on or before August 25, 2023. It is signed by Morris James LLP and Perkins Coie LLP, sets an objection deadline of August 15, 2023 and a hearing on August 22, 2023, and is 5 pages.
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Case 22-10951-CTG Doc 928 Filed 07/26/23 Page 1 of 5
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 15, 2023 at 4:00 p.m. (ET)
Hearing Date: August 22, 2023 at 1:00 p.m. (ET)
MOTION OF POST-CONFIRMATION DEBTORS, FOR AN ORDER TERMINATING
OMNI AGENT SOLUTIONS, INC. AS CLAIMS AND NOTICING AGENT EFFECTIVE
JULY 26, 2023 AND DIRECTING DELIVERY OF CLAIMS AND CLAIMS RECORDS
The post-confirmation Debtors (the “Post-Confirmation Debtors”), operating the Wind
Down Estates as defined in, and under the 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 the “Plan”), respectfully request the
entry of an Order terminating Omni Agent Solutions, Inc. (“Omni”) as claims and noticing agent,
effective as of July 26, 20232 (the “Termination Date”), and in support thereof, the Post
Confirmation Debtors respectfully represent as follows:
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).
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.
2
Effective July 26, 2023, Stretto, Inc. has been employed by the Post-Confirmation Debtors.
Case 22-10951-CTG Doc 928 Filed 07/26/23 Page 2 of 5
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.
BACKGROUND
3. 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.
4. On the Petition Date, the Debtors filed a motion to employ Omni as their claims
and noticing agent pursuant to 11 U.S.C. § 105(a) and 28 U.S.C. § 156(c) [Docket No. 4]
(the “Motion to Employ”). By the Motion to Employ, the Debtors sought an entry of an order
authorizing them to retain and employ Omni to, inter alia, (i) serve as the Court’s notice agent to
mail notices to the estates’ creditors and parties in interest; (ii) provide computerized claims,
objection and balloting database services; (iii) provide expertise, consultation and assistance in
claim and ballot processing and other administrative information; and (iv) provide disbursement
services.
5. On October 6, 2022, the Court entered an Order granting the Motion to Employ
[Docket No. 69] (the “Omni Employment Order”). In addition to approving Omni’s employment
as claims and noticing agent for the Debtors’ estates, the Omni Employment Order provided,
among other things,
2
Case 22-10951-CTG Doc 928 Filed 07/26/23 Page 3 of 5
ORDERED, that the Omni shall serve as the custodian of court records and shall be
designated as the authorized repository for all proofs of claim filed in these Chapter 11
Cases and is authorized and directed to maintain official claims registers for each of the
Debtors, to provide public access to every proof of claim (if any), and to provide the
Clerk with a certified duplicate thereof upon the request of the Clerk.
Omni shall not cease providing claims processing services during these Chapter 11
Cases for any reason, including nonpayment, without an order of this Court; provided,
however, that Omni may seek such an order on expedited notice by filing a request with
this Court with notice of such request to be served on the Debtors, the Office of the
United States Trustee, and any official committee of creditors appointed in these cases.
After entry of an order terminating Omni’s services as the Claims and Noticing Agent,
upon the closing of these Chapter 11 Cases, or for any other reason, Omni shall be
responsible for preparing all proofs of claim to be archived with the Federal Archives
Record Administration, if applicable.
6. On October 26, 2022, the Court entered an Order setting November 30, 2022
(the “Bar Date”) as the last day for creditors to file proofs of claim (and April 3, 2023 as the last
day for governmental units to file proofs of claim) [Docket No. 169].
7. On March 9, 2023, the Debtors filed the Plan, and 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].
8. 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.
RELIEF REQUESTED
9. The Post-Confirmation Debtors have determined, after consultation with Omni
that, in light of the status of the case — including the fact that the Plan is confirmed and has gone
effective and all bar dates in the case have long since passed — it is appropriate to terminate
Omni’s engagement at this time.
3
Case 22-10951-CTG Doc 928 Filed 07/26/23 Page 4 of 5
10. The Post-Confirmation Debtors intend to pay Omni promptly after receipt of
invoices from Omni.
11. The Post-Confirmation Debtors understand that Omni will turn over all
documents relating to the proofs of claims or requests for payment of administrative expenses
filed on behalf of the creditors to Stretto, Inc. (“Stretto”) and to such other entity (if any) as the
Clerk of the Court may direct. Omni will also transmit all official claims register information,
together with an up-to-date mailing list for all creditors, including entities that have filed a proof
of claim, a record of all transfers of claims, and other information require to be maintained by
Omni pursuant to the Order granting the Motion to Employ. Omni will also provide two (2) flash
drives or a secure electronic mail transfer containing all imaged claims and an .xls file of claims
information.
WHEREFORE, the Post-Confirmation Debtors, respectfully request that this Court enter
an Order, a copy of which is attached as Exhibit A: (i) authorizing the termination of Omni as
claims, noticing and balloting agent, effective July 26, 2023; (ii) directing Omni to turn over to
Stretto, or such entity as the Clerk of the Court may direct, and the Post-Confirmation Debtors on
or before August 25, 2023, those items set forth in paragraph 11 above; and (iii) granting such
order and further relief as is just.
Dated: July 26, 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
4
Case 22-10951-CTG Doc 928 Filed 07/26/23 Page 5 of 5
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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