Bankrupt PPP Loan Servicer Kabbage Gets Wind-Down Plan …

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By Alex Wolf
Bankrupt loan servicer Kabbage Inc. won court approval of a Chapter 11 liquidation plan that will transfer the company’s pandemic-assistance loan servicing obligations to a third party.
Kabbage will work with its banking partners, the Small Business Administration, and the Federal Reserve Bank of San Francisco to transition its loan servicing portfolio to another entity pursuant to a Chapter 11 plan approved by Judge Craig Goldblatt at a hearing Monday in the US Bankruptcy Court for the District of Delaware.
The plan will create a wind-down estate to distribute funds to creditors and pursue potential litigation related to a 2020 …
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