KServicing receives post-confirmation exclusivity extension

By Sarah Lizee

Olympia, Wash., May 17 – Kabbage, Inc., which does business as KServicing, secured a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the exclusive plan filing period through July 31 and the exclusive solicitation period through Oct. 2.

As previously reported, the company’s Chapter 11 plan was confirmed on March 15.

The company said it is confident that it will be able to satisfy all of the conditions precedent for the effective date of the plan to occur within the next few weeks.

However, given the complexities of the transition of the debtors’ loan servicing obligations, including external factors – such as third-party cooperation that are outside of the debtors’ control and impact the timing of emergence – it is seeking the extension out of an “abundance of caution.”

The Atlanta-based servicer and subservicer of small business Paycheck Protection Program loans filed bankruptcy on Oct. 3, 2022 under Chapter 11 case number 22-10951.

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