Order Sustaining KServicing Wind Down Corporation's Fourth — In re Kabbage (Dkt. 1074, Bankr. D. Del.)

Summary

A three-page Order filed November 1, 2024 as Doc 1074 in In re KServicing Wind Down Corp., et al., Post-Confirmation Debtors, Case No. 22-10951 (CTG), jointly administered, in the U.S. Bankruptcy Court for the District of Delaware, Chapter 11, Re: Docket No. 1054. The order sustains KServicing Wind Down Corporation's Fourth (Substantive) Omnibus Objection to Certain Proofs of Claims [PPP Borrower Claims] and states that each Claim set forth in Schedule 1 is disallowed and expunged in its entirety. It reserves KServicing WD's right to object on other grounds and states that the order is immediately effective and enforceable. It is dated November 1st, 2024 and names Craig T. Goldblatt, United States Bankruptcy Judge.

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Full text

                Case 22-10951-CTG              Doc 1074        Filed 11/01/24         Page 1 of 3




                        IN THE UNITED STATES BANKRUPTCY COURT
                             FOR THE DISTRICT OF DELAWARE

In re:                                                      Chapter 11

KServicing Wind Down Corp., et al.,1                        Case No. 22-10951 (CTG)

                 Post-Confirmation Debtors.                 (Jointly Administered)

                                                            Re: Docket No. 1054

   ORDER SUSTAINING KSERVICING WIND DOWN CORPORATION’S FOURTH
            (SUBSTANTIVE) OMNIBUS OBJECTION TO CERTAIN
             PROOFS OF CLAIMS [PPP BORROWER CLAIMS]

         Upon the fourth omnibus objection (the “Objection”) of KServicing Wind Down

Corporation (“KServicing WD”), for entry of an order (this “Order”) sustaining the Objection and

disallowing and expunging in their entirety the Claims set forth in Schedule 1 attached hereto, and

this Court having jurisdiction to consider the Objection 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; and this Court being able to issue a final order consistent with

Article III of the United States Constitution; and venue of these Chapter 11 Cases and the Objection

in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and this matter being a core

proceeding pursuant to 28 U.S.C. § 157(b); and this Court having found that proper and adequate

notice of the on and the relief requested therein has been provided in accordance with the

Bankruptcy Rules and the Local Rules, and that, except as otherwise ordered herein, no other or

further notice is necessary; and responses (if any) to the Objection having been withdrawn,


   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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resolved or overruled on the merits; and a hearing having been held to consider the relief requested

in the Objection and upon the record of the hearing and all of the proceedings had before this

Court; and this Court having found and determined that the relief set forth in this Order is in the

best interests of the Debtors and their estates; and that the legal and factual bases set forth in the

Objection establish just cause for the relief granted herein; and after due deliberation and sufficient

cause appearing therefore;

                 IT IS HEREBY ORDERED THAT:

               1.        The Objection is SUSTAINED as set forth herein.

               2.        Each Claim set forth in Schedule 1 attached hereto is disallowed and

expunged in its entirety.

               3.        This Order has no res judicata, estoppel, or other effect on the validity,

allowance, or disallowance of, and all rights to object to or defend on any basis are expressly

reserved with respect to any claims referenced or identified in the Objection that is not listed on

Schedule 1 attached hereto.

               4.        KServicing WD’s right to object on any other grounds that KServicing

WD discovers is preserved.

               5.        To the extent a response is filed regarding any claim, each such claim, and

the Objection as it pertains to such claim, will constitute a separate contested matter as

contemplated by Bankruptcy Rule 9014. This Order will be deemed a separate order with respect

to each claim. Any stay of this Order pending appeal by any claimants whose claims are subject

to this Order shall only apply to the contested matter that involves such claimant and shall not act

to stay the applicability and/or finality of this Order with respect to the other contested matters

listed in the Objection or this Order.



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                 6.       KServicing WD is authorized and empowered to execute and deliver such

documents, and to take and perform all actions necessary to implement and effectuate the relief

granted in this Order.

                 7.       Nothing in this Order or the Objection is intended or shall be construed as

a waiver of any of the rights KServicing WD may have to enforce rights of setoff against the

claimants.

                 8.       Nothing in the Objection or this Order, nor any actions or payments made

by KServicing WD pursuant to this Order, shall be construed as: (a) an admission as to the amount

of, basis for, or validity of any claim against KServicing WD under the Bankruptcy Code or other

applicable non-bankruptcy law; (b) a waiver of the KServicing WD or any other party in interest’s

right to dispute any claim; (c) a promise or requirement to pay any particular claim; (d) an

implication or admission that any particular claim is of a type specified or defined in this Order;

(e) an admission as to the validity, priority, enforceability, or perfection of any lien on, security

interest in, or other encumbrance on property of KServicing WD or the Debtors’ estates; or (f) a

waiver of any claims or causes of action which may exist against any entity under the Bankruptcy

Code or any other applicable law.

                 9.       This Order is immediately effective and enforceable, notwithstanding the

possible applicability of Bankruptcy Rule 6004(h) or otherwise.

                 10.      This Court shall retain jurisdiction with respect to any matters, claims,

rights or disputes arising from or related to the Objection or the implementation of this Order.




             Dated: November 1st, 2024            CRAIG T. GOLDBLATT
             Wilmington, Delaware                 UNITED STATES BANKRUPTCY JUDGE


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