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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In the Matter of: COLLINS & AIKMAN

CORPORATION, a corporation Chapter 11 Case No. 05-55927-swr Hon. Steven W. Rhodes (Jointly Administered)

Debtor. _______________________________/ MOTION TO COMPEL DEBTOR TO ASSUME OR REJECT EXECUTORY CONTRACTS FOR PAYMENT OF ADMINISTRATIVE LEASE PAYMENTS, OR IN THE ALTERNATIVE, TO TERMINATE THE AUTOMATIC STAY. NOW COMES Forsythe/McArthur Associates, Inc., (Forsythe), creditor herein, by and through its attorney, STILLMAN LAW OFFICE by Mimi D. Kalish, and for its Motion To Compel Debtor To Assume Or Reject Executory Contract, for Payment of Administrative Lease Payments, or in the Alternative, to Terminate the Automatic Stay, states as follows: 1. Forsythe is requesting that this Court enter an Order Court for an Order compelling the

Debtor to assume or reject its executory contract with Forsythe, pursuant to 11 USC 365(a), to wit: computer, data processing, and telecommunications equipment leases; to compel the Debtor to pay administrative lease payments; or, in the alternative, to terminate the automatic stay for the following reasons: 2. That on May 17, 2005 (the Petition Date), the above named Debtor and numerous

related companies, including, without limitation, Collins and Aikman Products, Co., (Case No. 05-55927-swr) filed petitions under Chapter 11 of the Bankruptcy Code. 3. Pursuant to an Order of this Court entered on May 17, 2005, the Chapter 11 case of

Collins and Aikman Products, Co. (CAProducts) was jointly administered under the above captioned case number.

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4.

On or about May 19, 1998, Textron Automotive, Inc. (Textron) entered into a Master

Lease Agreement (the Lease Agreement) with Forsythe covering the lease of computer, data processing, and telecommunications equipment (the Leased Equipment) to be utilized in Textrons business. The Lease Agreement is attached hereto as Exhibit B. 5. On December 23, 2004, Textron, with the knowledge and consent of Forsythe, entered

into an assignment and assumption agreement with CAProducts, wherein CAProducts took possession of the Leased Equipment and assumed all of Textrons obligations for the Leased Equipment as for fully set forth below. Equipment Schedule K dated 11/30/1998 Equipment Schedule M dated 1/29/1999 Equipment Schedule U dated 1/29/1999 Equipment Schedule Y dated 3/17/1999 Equipment Schedule Z dated 3/23/1999 Copies of the above referenced Assignment and Assumption Agreement and equipment schedules are attached hereto as Exhibits C through H. 6. That the Lease Agreements with Textron, now assumed by CAProducts provided for

quarterly rent payments to Forsythe as set forth in the document entitled Attachment 1, and attached hereto as Exhibit I (the Equipment Rental Payments). 7. Since the Petition Date, the Debtor has continued to utilize the Leased Equipment in

connection with its ongoing business affairs without compensating Forsythe for its use or for the wear and tear on these depreciating assets. The Debtor has failed to make any post-petition Equipment Rental Payments in connection with the use of the Leased Equipment.

8.

That the post petition Equipment Rental Payments constitute allowable and appropriate

administrative expenses of the estate. 9. The Debtors failure to make the monthly payments as required by the Lease Agreement

constitutes an Event of Default under the Lease Agreement. The Debtor is currently in excess of $135,000.00 in arrears on its obligations under the Lease Agreement. 10. That pursuant to 11 USC 365(a), the Debtor may assume or reject any executory

contract or unexpired lease. 11. The Debtors continued use of the Leased Equipment, its failure to pay post-petition rent

payments to Forsythe, its failure to assume or reject the executory contract with Forsythe has resulted in Forsythe not being adequately protected as is required by the Bankruptcy Code. 12. That if Debtor fails to assume the executory contract in the manner set forth in 11 USC

365(b)(1) or fails to pay administrative lease payments, good cause exists for the termination of the automatic stay as provided in 11 USC 362(d)(1) and (2). 13. That pursuant to L.B.R. 9014-1(b)(4)(E.D.M.), attached is a copy of a proposed Order

Compelling the Debtor to Assume or Reject the Executory Contract, Compelling Payment of Administrative Lease Payments, or Terminating the Automatic Stay. WHEREFORE Forsythe/McArthur Associates, Inc. prays this Court grant its Motion for an Order compelling the Debtor to pay administrative lease payments or, in the alternative, to terminate the automatic stay. STILLMAN LAW OFFICE

____________________________ Mimi D. Kalish (P52383) Attorney for Creditor 7019 Orchard Lake Road, Suite 270

West Bloomfield, MI 48322 (248) 851-6000 Dated: September 12, 2005

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In the Matter of: COLLINS & AIKMAN CORPORATION, a corporation Chapter 11 Case No. 05-55927-swr Hon. Steven W. Rhodes (Jointly Administered)

Debtor. _______________________________/ BRIEF IN SUPPORT OF MOTION TO COMPEL DEBTOR TO ASSUME OR REJECT EXECUTORY CONTRACTS FOR PAYMENT OF ADMINISTRATIVE LEASE PAYMENTS,OR IN THE ALTERNATIVE, TO TERMINATE THE AUTOMATIC STAY. NOW COMES Forsythe/McArthur Associates, Inc., (Forsythe), creditor herein, by and through its attorney, STILLMAN LAW OFFICE by Mimi D. Kalish, and for its Brief in Support of its Motion To Compel Debtor To Assume Or Reject Executory Contract, for Payment of Administrative Lease Payments, or in the Alternative, to Terminate the Automatic Stay, states as follows: Movant relies on 11 USC 365, 362(d)(1) & (2), and 503 in support of this motion. WHEREFORE Forsythe/McArthur Associates, Inc. prays this Court grant its Motion for an Order compelling the Debtor to pay administrative lease payments or, in the alternative, to terminate the automatic stay. STILLMAN LAW OFFICE

____________________________ Mimi D. Kalish (P52383) Attorney for Creditor 7019 Orchard Lake Road, Suite 270 West Bloomfield, MI 48322 (248) 851-6000 Dated: September 12, 2005

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In the Matter of: COLLINS & AIKMAN CORPORATION, a corporation Chapter 11 Case No. 05-55927-swr Hon. Steven W. Rhodes (Jointly Administered)

Debtor. _______________________________/ ORDER TERMINATING AUTOMATIC STAY This matter having come on upon the Motion of FORSYTHE/McARTHUR ASSOCIATES, INC. to Terminate the Automatic Stay, and Notice of Motion having been given to all parties affected by said Motion, and no timely written response or objection having been received by this Court, and Certificate of No Response having been filed, and the Court being duly advised in the premises: IT IS ORDERED that the Automatic Stay provisions of 11 USC 362 be and the same hereby are terminated as it relates to FORSYTHE/McARTHUR ASSOCIATES, INC.s rights in the property described as: Computer and data equipment covered by Master Lease Agreement No. F32525 dated May 19, 1998, and detailed in: Equipment Schedule K dated 11/30/1998 Equipment Schedule M dated 1/29/1999 Equipment Schedule U dated 1/29/1999 Equipment Schedule Y dated 3/17/1999 and said creditor may reclaim and liquidate the collateral immediately upon entry of this Order. IT IS FURTHER ORDERED that the ten (10) day stay provision of Rule 4001(a)(3) Fed. Rules of Bankruptcy Procedure be and the same hereby is waived. IT IS FURTHER ORDERED that if a deficiency balance exists after the

liquidation of the collateral, FORSYTHE/McARTHUR ASSOCIATES, INC. may amend its Proof of Claim accordingly. IT IS SO ORDERED. _____________________________________ UNITED STATES BANKRUPTCY JUDGE Exhibit A

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In the Matter of: COLLINS & AIKMAN CORPORATION, a corporation Tax ID# 13-3489233 Debtor. _______________________________/
NOTICE OF FORSYTHE/McARTHUR ASSOCIATES, INCS MOTION TO TERMINATE AUTOMATIC STAY Forsythe/McArthur Associates, Inc. has filed papers with the Court to Terminate the Automatic Stay. Your rights may be affected. You should read these papers carefully and discuss them with your attorney, if you have one in this bankruptcy case. (If you do not have an attorney, you may wish to consult one.) If you do not want the Court to terminate the Automatic Stay, or if you want the Court to consider your views on the Motion, within 15 days, you or your attorney must: 1. File with the Court a written response or an answer, explaining your position at:i

Chapter 11 Case No. 05-55927-swr Hon. Steven W. Rhodes

United States Bankruptcy Court, 211 W. Fort Street, Suite 2100, Detroit, MI 48226 Marion J. Mack, US Trustee, 211 W. Fort St., Suite 700, Detroit, MI 48226. If you mail your response to the Court for filing, you must mail it early enough so the Court will receive it on or before the date stated above. You must also mail a copy to: STILLMAN LAW OFFICE, 7091 Orchard Lake Road, Suite 270, West Bloomfield, MI 48322. Office of the United States Trustee, 211 West Fort Street, Suite 700, Detroit, MI 48226. 2. If a response or answer is timely filed and served, the clerk will schedule a hearing on the motion and you will be served with a notice of the date, time and location of the hearing.

If you or your attorney do not take these steps, the Court may decide that you do not oppose the relief sought in the motion and may enter an order granting that relief. Date: September 12, 2003 ________________________________ STILLMAN LAW OFFICE Attorney for Forsythe/McArthur Associates, Inc.

Response or answer must comply with F.R.Civ.P. 8(c)and(e)

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In the Matter of: COLLINS & AIKMAN CORPORATION, a corporation Chapter 11 Case No. 05-55927-swr Hon. Steven W. Rhodes (Jointly Administered)

Debtor. _______________________________/ CERTIFICATE OF SERVICE Mimi D. Kalish hereby states that she is the attorney for Creditor Forsythe/McArthur Associates, Inc. and that on September 12, 2005 she did electronically file its Motion To Compel Debtor To Assume Or Reject Executory Contract, for Payment of Administrative Lease Payments, or in the Alternative, to Terminate the Automatic Stay with the Clerk of the Court using the ECF system which will send notification of such filing to the following: CARSON FISCHER, PLC Joseph M. Fischer (P13452) 300 E. Maple Road, 3rd Floor Birmingham, MI 48009 Richard M. Cieri 153 East 53rd Street New York, NY 10022-4611 OFFICE OF THE U.S. TRUSTEE 211 W. Fort Street, Suite 700 Detroit, MI 48009

/s/ Mimi D. Kalish _________________________/ MIMI D. KALISH

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