IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION,

et al.1 Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification #13-3489233) Honorable Steven W. Rhodes

EX PARTE MOTION FOR ORDER SHORTENING NOTICE PERIOD AND SCHEDULING AN EXPEDITED HEARING ON: DEBTORS MOTION FOR THE ENTRY OF AN ORDER APPROVING THEIR ENTRY INTO THE SETTLEMENT AGREEMENT AMONG THE DEBTORS, JPMORGAN CHASE BANK, N.A. AND FORD MOTOR COMPANY The above-captioned debtors (collectively, the Debtors), in support of their ex parte motion for order shortening notice period and scheduling an expedited hearing (the Ex Parte Motion) on the Debtors motion for the entry of an order approving their entry into the settlement agreement (the Settlement Agreement) among certain of the Debtors and their

The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 05-55949; Becker Group, LLC (d/b/a/ Collins & Aikman Premier Mold), Case No. 05-55977; Brut Plastics, Inc., Case No. 05-55957; Collins & Aikman (Gibraltar) Limited, Case No. 05-55989; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation), Case No. 05-55952; Collins & Aikman Asset Services, Inc., Case No. 05-55959; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.), Case No. 05-55965; Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.), Case No. 0555991; Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.), Case No. 05-55958; Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.), Case No. 05-55956; Collins & Aikman Automotive International, Inc., Case No. 05-55980; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.), Case No. 05-55985; Collins & Aikman Automotive Mats, LLC, Case No. 05-55969; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.), Case No. 05-55978; Collins & Aikman Automotive Services, LLC, Case No. 05-55981; Collins & Aikman Canada Domestic Holding Company, Case No. 05-55930; Collins & Aikman Carpet & Acoustics (MI), Inc., Case No. 05-55982; Collins & Aikman Carpet & Acoustics (TN), Inc., Case No. 05-55984; Collins & Aikman Development Company, Case No. 05-55943; Collins & Aikman Europe, Inc., Case No. 05-55971; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.), Case No. 05-55963; Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.), Case No. 05-55976; Collins & Aikman Interiors, Inc., Case No. 05-55970; Collins & Aikman International Corporation, Case No. 05-55951; Collins & Aikman Plastics, Inc., Case No. 05-55960; Collins & Aikman Products Co., Case No. 05-55932; Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 05-55979; Dura Convertible Systems, Inc., Case No. 05-55942; Gamble Development Company, Case No. 05-55974; JPS Automotive, Inc. (d/b/a PACJ, Inc.), Case No. 05-55935; New Baltimore Holdings, LLC, Case No. 05-55992; Owosso Thermal Forming, LLC, Case No. 05-55946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 05-55962; and Wickes Manufacturing Company, Case No. 05-55968.

K&E 12103522.2

0W[;')5

0555927070921000000000007

'{

non-Debtor affiliates, JPMorgan Chase Bank, N.A., as agent to the senior, secured prepetition lenders (the Agent), and Ford Motor Company and certain of its affiliates (collectively, Ford) [Docket No. 8237] (the Settlement Agreement Motion),2 respectfully state as follows: Jurisdiction 1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. 1334. This

matter is a core proceeding within the meaning of 28 U.S.C. 157(b)(2). 2. 3. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. The statutory bases for the relief requested herein are Rules 9006 and 9007 of the

Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules) and Rule 9006-1(b) of the Local Rules of the United States Bankruptcy Court, Eastern District of Michigan (the Local Rules). Background 4. for relief On May 17, 2005 (the Petition Date), the Debtors filed their voluntary petitions under chapter 11 of the Bankruptcy Code, 11 U.S.C 101-1330

(the Bankruptcy Code). On the Petition Date, the Court entered an order jointly administering these cases pursuant to Bankruptcy Rule 1015(b). 5. On May 24, 2005, the United States trustee appointed an official committee of

unsecured creditors pursuant to section 1102 of the Bankruptcy Code (the Committee). 6. On July 12, 2007, Collins & Aikman Corporation, one of the Debtors, and its non-

Debtor affiliates Collins & Aikman Automotive Hermosillo S.A. de C.V. and Collins & Aikman Management Hermosillo S.A. de CV entered into an asset purchase agreement with International Automotive Components Group North America, Inc. for the sale (the Hermosillo Sale) of
2 Capitalized terms used but not otherwise defined in this Ex Parte Motion have the meanings assigned in the Settlement Agreement Motion.

2
K&E 12103522.2

substantially all of the Debtors assets located at their Hermosillo, Sonora, Mexico facility (the Hermosillo Assets). On August 31, 2007, the Court entered an order [Docket No. 8134] approving the Hermosillo Sale. 7. On July 18, 2007, the Court entered an order [Docket No. 7827] confirming the

Debtors chapter 11 plan [Docket No. 7731] (the Plan). Pursuant to the Plan, substantially all of the Debtors assets, other than those assets set aside for the litigation trust, will be distributed to the senior secured prepetition lenders. 8. As a condition to the consummation of the Hermosillo Sale, the Debtors are

obligated to enter into a settlement agreement with respect to substantially all of their commercial claims and disputes with Ford, including any claims or disputes regarding the Hermosillo Assets. Ford is the principal customer of the automotive component parts produced by the Debtors at their Hermosillo, Mexico facility. 9. After extensive discussions with Ford and the Agent, the Debtors have agreed to The Settlement Agreement, among other things,

enter into the Settlement Agreement.

(a) resolves substantially all of the commercial disputes between Ford and the Debtors and (b) relieves the Debtors of certain financial obligations associated with any claims maintained by Ford against the Debtors. 10. Contemporaneously with the filing of this Ex Parte Motion, the Debtors filed the

Settlement Agreement Motion. Relief Requested 11. The Debtors request that, pursuant to Bankruptcy Rule 9006(c) and Local Rule

9006-1(b), the Court shorten the notice period for objecting or otherwise responding to the Settlement Agreement Motion to September 25, 2007 at 12:00 p.m. prevailing Eastern Time and

3
K&E 12103522.2

schedule an expedited hearing to be conducted at the omnibus hearing on September 27, 2007 at 2:00 p.m. prevailing Eastern Time. 12. Notably, the Agent, as a party to the Settlement Agreement, consents to having

this matter heard on an expedited basis and to the relief requested in the Settlement Agreement Motion. Basis for Relief 13. As set forth in more detail in the Settlement Agreement Motion, after

extensive negotiations, the Debtors, Ford and the Agent entered into the Settlement Agreement that, among other things, will: (a) provide additional funds to the Debtors for the benefit of the Debtors estates and their creditors, (b) resolve all pre- and postpetition claims Ford and the Debtors could assert against each other with respect to the tooling equipment used to produce certain automotive parts for Ford at the Debtors Mexican facilities and (c) minimize the Debtors exposure to potential additional administrative expense claims maintained by Ford. 14. The Settlement Agreement also will facilitate the consummation of the

Hermosillo Sale. Additionally, the Debtors believe that the resolution of substantially all of their outstanding commercial disputes and other issues with Ford pursuant to the

Settlement Agreement will allow the Debtors to (a) effectuate certain other asset sales more effectively and (b) maximize the value of such sales for the benefit of the Debtors estates and their creditors. 15. For the reasons set forth above and in the Settlement Agreement Motion, good

and sufficient cause exists to consider the Settlement Agreement Motion on an expedited basis. 16. Pursuant to Bankruptcy Rule 9007, the Court has authority to regulate the time

within which, the entities to whom and the form and matter in which, notice shall be given,

4
K&E 12103522.2

which includes the authority to determine appropriate notice for conducting a hearing on the matters presented by the Settlement Agreement Motion.

5
K&E 12103522.2

WHEREFORE, the Debtors respectfully request the entry of an order, substantially in the form attached hereto as Exhibit A, (a) shortening the period for objecting or otherwise responding to the Settlement Agreement Motion to September 25, 2007, at 12:00 p.m. prevailing Eastern Time, (b) scheduling an expedited hearing on the Settlement Agreement Motion for September 27, 2007, at 2:00 p.m. prevailing Eastern Time and (c) granting such other and further relief as the Court deems just and proper. Dated: September 21, 2007 KIRKLAND & ELLIS LLP /s/ Ray C. Schrock Richard M. Cieri (NY RC 6062) Citigroup Center 153 East 53rd Street New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 -andDavid L. Eaton (IL 3122303) Ray C. Schrock (IL 6257005) Scott R. Zemnick (IL 6276224) 200 East Randolph Drive Chicago, Illinois 60601 Telephone: (312) 861-2000 Facsimile: (312) 861-2200 -andCARSON FISCHER, P.L.C. Joseph M. Fischer (P13452) 4111 West Andover Road West - Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors

6
K&E 12103522.2

EXHIBIT A

K&E 12103522.2

IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION, et al.1 Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification #13-3489233) Honorable Steven W. Rhodes

ORDER SHORTENING NOTICE PERIOD AND SCHEDULING AN EXPEDITED HEARING ON: DEBTORS MOTION FOR THE ENTRY OF AN ORDER APPROVING THEIR ENTRY INTO THE SETTLEMENT AGREEMENT AMONG THE DEBTORS, JPMORGAN CHASE BANK, N.A. AND FORD MOTOR COMPANY Upon the ex parte motion (the Ex Parte Motion) of the above-captioned debtors (collectively, the Debtors) for entry of an order shortening the notice period and scheduling an expedited hearing on the Debtors motion (the Settlement Agreement Motion)2 for an order approving their entry into the Settlement Agreement; it appearing that the Court has jurisdiction

The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 05-55949; Becker Group, LLC (d/b/a/ Collins & Aikman Premier Mold), Case No. 05-55977; Brut Plastics, Inc., Case No. 05-55957; Collins & Aikman (Gibraltar) Limited, Case No. 05-55989; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation), Case No. 05-55952; Collins & Aikman Asset Services, Inc., Case No. 05-55959; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.), Case No. 05-55965; Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.), Case No. 0555991; Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.), Case No. 05-55958; Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.), Case No. 05-55956; Collins & Aikman Automotive International, Inc., Case No. 05-55980; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.), Case No. 05-55985; Collins & Aikman Automotive Mats, LLC, Case No. 05-55969; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.), Case No. 05-55978; Collins & Aikman Automotive Services, LLC, Case No. 05-55981; Collins & Aikman Canada Domestic Holding Company, Case No. 05-55930; Collins & Aikman Carpet & Acoustics (MI), Inc., Case No. 05-55982; Collins & Aikman Carpet & Acoustics (TN), Inc., Case No. 05-55984; Collins & Aikman Development Company, Case No. 05-55943; Collins & Aikman Europe, Inc., Case No. 05-55971; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.), Case No. 05-55963; Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.), Case No. 05-55976; Collins & Aikman Interiors, Inc., Case No. 05-55970; Collins & Aikman International Corporation, Case No. 05-55951; Collins & Aikman Plastics, Inc., Case No. 05-55960; Collins & Aikman Products Co., Case No. 05-55932; Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 05-55979; Dura Convertible Systems, Inc., Case No. 05-55942; Gamble Development Company, Case No. 05-55974; JPS Automotive, Inc. (d/b/a PACJ, Inc.), Case No. 05-55935; New Baltimore Holdings, LLC, Case No. 05-55992; Owosso Thermal Forming, LLC, Case No. 05-55946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 05-55962; and Wickes Manufacturing Company, Case No. 05-55968. Capitalized terms used but not otherwise defined in this Order have the meanings assigned in the Settlement Agreement Motion.

K&E 12103522.2

over this matter pursuant to 28 U.S.C. 157 and 1334; it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this proceeding and the Ex Parte Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409; it appearing that notice of the Ex Parte Motion and the opportunity for a hearing on the Ex Parte Motion was appropriate under the particular circumstances and that no other or further notice need be given; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED 1. 2. The Ex Parte Motion is granted in its entirety. A hearing on the Settlement Agreement Moton will be conducted before the

Honorable Steven W. Rhodes on September 27, 2007 at 2:00 p.m. prevailing Eastern Time or as soon thereafter as counsel may be heard in the United States Bankruptcy Court, 211 W. Fort Street, Detroit, Michigan 48226. 3. The objection deadline for the relief requested by the Debtors in the

Settlement Agreement Motion shall be September 25, 2007 at 12:00 p.m. prevailing Eastern Time. 4. The Debtors shall immediately serve a copy of this Order and, to the extent such

motion has not been previously served, the Settlement Agreement Motion upon the Core Group, the 2002 List and the Affected Parties as required by the Case Management Procedures.3 5. The Debtors are authorized and empowered to take all actions necessary to

implement the relief granted in this Order.

Capitalized terms used in this paragraph 4 not otherwise defined herein shall have the meanings set forth in the First Amended Notice, Case Management and Administrative Procedures [Docket No. 294].

2
K&E 12103522.2

6.

The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 7. The Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

3
K&E 12103522.2