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  1. #1
    Senior Member Reputation points: 11927 FUND3R1's Avatar
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    Kabbage Out Of Buisness?

    Just copied and pasted the article to avoid having to go to another website, see below.



    WILMINGTON, Del., Oct. 3, 2022 /PRNewswire/ -- Kabbage, Inc. d/b/a KServicing ("KServicing" or the "Company"), a prominent servicer and subservicer of small business Paycheck Protection Program loans ("PPP Loans"), today announced that the Company has voluntarily filed for relief and protections under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. KServicing has determined that a Chapter 11 restructuring proceeding provides the Company with beneficial flexibility and protections to consummate the winding down of its operations in an efficient and effective manner and will also provide a framework for resolution with key stakeholders and a possible global settlement of outstanding disputes.

    The Company is focused on minimizing any disruption to its loan servicing obligations to ensure a seamless experience for all borrowers.

    "The actions we take today are in line with KServicing's mission to support PPP borrowers through their loan forgiveness process, provide loan processing services to partner banks, and wind down the Company's existing loan portfolio," Laquisha Milner, Chief Executive Officer, stated. "During the COVID-19 pandemic, the Company was instrumental in originating and servicing PPP loans in partnership with the federal government and bringing the benefits of the PPP to small businesses in underserved communities. We remain committed to providing high-quality service to borrowers and continuing to service PPP loans without interruption to the best of our abilities during this process."

    KServicing has filed a number of customary first day motions with the Bankruptcy Court that, among other things, seek authorization to continue the operations of the Company in the ordinary course of business. Further, as a routine matter, the Company has sought relief in the Chapter 11 Cases to continue paying all active employees in the ordinary course. This relief includes all wages, compensation, and other benefits, including healthcare. The Company expects to receive court approval for these requests.

    The Company remains committed to maximizing the value of its business and strongly believes in its ability to effectively and efficiently wind down its operations through Chapter 11, a benefit that will inure to all stakeholders and other parties in interest.

    KServicing's Chapter 11 Cases are administered under case numbers 22-10951, 22-10952, 22-10953, 22-10954, 22-10955 and 22-10956, with a request for joint administration pending.

    Weil, Gotshal & Manges LLP is acting as the Company's restructuring counsel, Richards Layton & Finger P.A. is acting as the Company's co-counsel and AlixPartners LLP is acting as financial advisor, in connection with the Chapter 11 Cases. For more information about the Chapter 11 Cases, including access to Court documents, please visit: https://omniagentsolutions.com/KServicing. KServicing also has established a restructuring information line that can be reached at the following number: (866) 956-2138 (toll free in U.S./Canada) or (747) 226-5953 (International).
    FUND3R1

    "Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each. --Christopher Rice"

  2. #2
    Shocking that a company offering super cheap financing with almost no underwriting would run into trouble... or maybe it's because they have a vegetable in their name, I hear that usually means they suck.

  3. #3
    Senior Member Reputation points: 86751
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    AMEX acquired Kabbage but they didn't buy the folio that was doing PPP loans aka Kservicing, as those loans and the operations of the PPP they serviced has been under investigation

  4. #4
    Senior Member Reputation points: 42992 SendDocsPlox's Avatar
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    Quote Originally Posted by OC Funder View Post
    Shocking that a company offering super cheap financing with almost no underwriting would run into trouble... or maybe it's because they have a vegetable in their name, I hear that usually means they suck.
    It's our time to rise from the soil and shine at Potato Funding babyyyy

  5. #5

  6. #6
    Senior Member Reputation points: 34662
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    No way. You mean to tell me a company offering 1.05-1.12 over 6-12+ is struggling and may be out of business? I cannot believe this at all. That model seems dumby-proof.

  7. #7
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    When I was doing PPP loans, one bank I dealt with was concerned that there wasn't any funds in the program for servicing the loans that were not forgiven. Typical government screw up. The EIDL was really horrible as they should have allowed SBA service providers like me to take their fees out of the loans. Since I had no idea when the loans got funded, I had to rely on the client to tell me. When I found out, I was told....Oh I don't have any money left to pay you. More than 50% of the people stiffed me. A major lender ON THIS SITE stiffed me over $10,000.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  8. #8
    Senior Member Reputation points: 8659
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    Reminds me of Dealstruck and Quarterspot deals before they went down. And then CAN funding all those deals when the merchants' banks were negative almost every day. Now you see Kapitus going out up to 24 months

  9. #9
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    Kabbage the funder was sold to American Express. The remaining company is the company that filed CH11. Their business was processing and managing the PPP loans that were processed by Kabbage. There are a host of investigations and suits around the entity that filed CH11.
    Hedley Lamarr......That's Hedley

  10. #10

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