Bankrupt loan servicer Kabbage Inc.'s liquidation plan is facing pushback from pandemic-assistance loan borrowers who are concerned about getting their loans forgiven.
The Paycheck Protection Program borrowers who used Kabbage’s services urged the US Bankruptcy Court for the District of Delaware in a filing Tuesday to reject the liquidation plan because it doesn’t appear to be in the best interest for them and other creditors.
The PPP borrowers sued Kabbage in March 2022, accusing the SoftBank-backed company of failing to timely and competently process their applications for forgiveness.
Kabbage, which has been operating as K Servicing, sold much of its ...
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