Kabbage DBA KServicing Chapter 11 liquidations unfolds in Scottsdale
Staff Reports | Digital Free Press
Jeremiah Foster, president and founder of Resolute Commercial Services in Scottsdale, was recently appointed to act as the wind down officer for Kabbage DBA KServicing following Chapter 11 proceedings.
Kabbage, once a prominent service and subservicer of small business loans, was approved for liquidation as part now-approved Chapter 11 bankruptcy proceedings earlier this year.
Chapter 11 bankruptcy is a reorganization proceeding under the United States Bankruptcy Code. It is designed to allow a debtor to restructure its debts and emerge from bankruptcy as a viable business. Chapter 11 is the most complex of the bankruptcy chapters, and it is often used by large companies that are facing financial difficulties.
In a Chapter 11 bankruptcy, the debtor files a petition with the bankruptcy court and asks for protection from creditors.
“This project is a culmination of our 15 years of helping distressed businesses on the West Coast,” Mr. Foster said in a prepared statement.
“Many qualified firms were in the running for this project. It was an honor to be appointed to help guide this national company headquartered on the Southeast Coast through this process. We are excited to be recognized for the excellent work we are doing across the country to resolve the financial challenges facing companies.”
The Arizona-based executive will oversee the multi-year engagement to wind down the bankruptcy and liquidation estate for KServicing, including managing the existing claims pool in excess of $3B, facilitating the transfer of loans to third parties, investigating causes of action, initiating litigation, administering claims and processing all recoveries.
Resolute Commercial representatives report Mr. Foster officially began work on the project in June and Resolute has already made significant recoveries for the estate.
Resolute works with middle market companies, helping leadership assess, diagnose, and resolve challenging financial and operations issues. Under the guidance of the firm’s team of industry leaders, Resolute has helped over 300 companies navigate transition through the different states of distress, many with positive resolutions.
Kabbage, Inc. DBA KServicing is a financial technology company founded in 2010 and headquartered in Atlanta, Georgia, providing working capital to small businesses. From 2020-2021, KServicing provided and facilitated a total of $7B in necessary funding to small business owners through PPP loans during the COVID-19 pandemic, making it one of the largest PPP lenders in the country.