UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re COLLINS & AIKMAN CORPORATION, et al., Debtors.

________________________________________ ) ) ) ) ) ) ) Case No. 05-55927 (SWR) Chapter 11 Honorable Steven W. Rhodes (Jointly Administered)

HONIGMAN MILLER SCHWARTZ AND COHN LLPS MOTION FOR REASSIGNMENT OF PREFERENCE CASE MEDIATIONS FROM PEPPER HAMILTON LLP TO ALTERNATE MEDIATORS FOR CAUSE Honigman Miller Schwartz and Cohn LLP (Honigman) represents defendants in numerous preference and fraudulent conveyance adversary proceedings brought by the Collins & Aikman Litigation Trust (the Trust).1 Pepper Hamilton LLP (Pepper) has been appointed
1

On information and belief, the Debtors in this bankruptcy case are: 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. 05-55991; 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. 0555978; 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;

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mediator in 12 of those cases under this Courts November 30, 2007 Amended Order Regarding Mediation (the Mediation Order). Honigman has recently developed a conflict with Pepper and requests reassignment of the mediations from Pepper to alternate mediators for cause to promote the just, speedy, and inexpensive resolution of those adversary proceedings. JURISDICTION 1. 2. 3. This Court has jurisdiction over this Motion under 28 U.S.C. 1334. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. The bases for the relief requested in this Motion are 11 U.S.C. 105, Fed. R.

Bank. P. 9024, Fed R. Civ. P. 60(b), and this Courts inherent authority. BACKGROUND 4. Pepper was assigned to mediate the following adversary proceedings in which a

Honigman client is a defendant (the Adversary Proceedings): Defendant Acord Holdings, L.L.C. and Acord Inc. Allied Waste Services, Allied Waste Services #095, Allied Waste Services #253, Allied Waste Services @259, Allied Waste Services #729, Allied Waste Services #778, and Allied Waste Services #840 Cadillac Products Automotive Company Distribution Marcel Dion, Inc. (Nolan & Cummings, et al.) Haley & Aldrich, Inc. and Haley & Aldrich Design & Construction Inc. ISP Synthetic Elastomers LP Adv. Proc. No. 07-05490 07-04812 Mediation Date (if set)

07-05573 07-05522 07-05644 07-05620

5/7/08

5/21/08

Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 0555979; 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. 0555946; 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.

Mico Industries, Guelph Tool & Die and Mico Industries Inc. Permacel Automotive Piqua Technologies, Inc. TRW Fastening Systems, TRW Electronics, TRW Automotive, TRW Auto Elect. & Comp. GmbH, TRW Controls & Fasteners Group, TRW Transportation, and TRW Fasteners Division TRW VSSI, et al. Valeo, Valeo Vision Mazamet, Valeo Sylvania LLC, and Valeo Switches & Detection 5.

07-05510 07-05374 07-053932 07-05597 5/13/08 5/13/08

07-054673 07-05587

Honigman represented the Unsecured Creditors Committee in the Steel Parts

Corporation bankruptcy case, Case No. 06-52972 (the Steel Parts Case). 6. 7. Pepper represented the Debtor and the Liquidating Trustee in the Steel Parts Case. Honigman is investigating and expects to file an adversary proceeding against the

Liquidating Trustee, and may have claims against Pepper, in connection with the Steel Parts Case due to their failure to comply with a Court Order requiring payment of Honigmans fees as counsel to the Unsecured Creditors Committee and their diversion of estate funds to pay themselves and all other professionals and administrative creditors in full without paying Honigman. 8. Honigman has requested that the Trust and Pepper consent to Honigmans

requested reassignment of the mediations of the Adversary Proceedings from Pepper to alternate mediators. 9. Scott E. Ratner, on behalf of the Trust, has indicated that the Trust will not take a

position on Honigmans request.

Permacel and Piqua are related companies which should be assigned to the same mediator.
3

The two TRW cases should be assigned to the same mediator.

10. 11.

Pepper did not consent to Honigmans request. The Court indicated in its Mediation Order that its purpose was to promote the

just, speedy, and inexpensive resolution of these adversary proceedings. 12. In light of the conflict between Pepper and Honigman, it would be just to reassign

the affected mediations from Pepper to alternate mediators. 13. Honigman relies upon Fed. R. Bank. P. 9024, which incorporates Fed. R. Civ. P.

60(b)(6) permitting relief from an order for any reasons justifying relief, 11 U.S.C. 105, and this Courts inherent authority. HONIGMAN REQUESTS that this Court order that Pepper shall not mediate the Adversary Proceedings, assign alternate mediators to the Adversary Proceedings, and grant Honigman such additional relief as is just and proper. A proposed Order is attached as Exhibit A. Respectfully submitted, HONIGMAN MILLER SCHWARTZ AND COHN LLP Attorneys for Movant Dated: April 25, 2008 /s/ Scott A. Wolfson Judy B. Calton (P38733) Scott A. Wolfson (P53194) E. Todd Sable (P54956) 2290 First National Building 660 Woodward Avenue Detroit, MI 48226 Telephone: (313) 465-7610 Facsimile: (313) 465-7611 Email: swolfson@honigman.com By:

DETROIT.3083752.2

EXHIBIT A

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re COLLINS & AIKMAN CORPORATION, et al., Debtors. ________________________________________ ) ) ) ) ) ) Case No. 05-55927 (SWR) Chapter 11 Honorable Steven W. Rhodes (Jointly Administered)

ORDER GRANTING HONIGMAN MILLER SCHWARTZ AND COHN LLPS MOTION FOR REASSIGNMENT OF PREFERENCE CASE MEDIATIONS FROM PEPPER HAMILTON LLP TO ALTERNATE MEDIATORS FOR CAUSE This matter having come on to be considered upon the Motion For Reassignment Of Preference Case Mediations From Pepper Hamilton LLP To Alternate Mediators For Cause (the Motion), the Court having considered the Motion, the exhibits thereto, any objections, argument of counsel, testimony and exhibits offered into evidence, and the record in this case, no further notice or hearing being necessary, capitalized terms not defined herein having the meanings as defined in the Motion, and the Court being fully advised in the premises; IT IS HEREBY ORDERED THAT: 1. 2. Pepper shall not serve as mediator of the Adversary Proceedings. The mediators of the Adversary Proceedings shall be as follows: Adv. Proc. No. 07-05490 07-04812 Mediator

Defendant Acord Holdings, L.L.C. and Acord Inc. Allied Waste Services, Allied Waste Services #095, Allied Waste Services #253, Allied Waste Services @259, Allied Waste Services #729, Allied Waste Services #778, and Allied Waste Services #840 Cadillac Products Automotive Company Distribution Marcel Dion, Inc. (Nolan & Cummings, et al.) Haley & Aldrich, Inc. and Haley & Aldrich Design & Construction Inc. ISP Synthetic Elastomers LP Mico Industries, Guelph Tool & Die and Mico

07-05573 07-05522 07-05644 07-05620 07-05510

Industries Inc. Permacel Automotive Piqua Technologies, Inc. TRW Fastening Systems, TRW Electronics, TRW Automotive, TRW Auto Elect. & Comp. GmbH, TRW Controls & Fasteners Group, TRW Transportation, and TRW Fasteners Division TRW VSSI, et al. Valeo, Valeo Vision Mazamet, Valeo Sylvania LLC, and Valeo Switches & Detection 3.

07-05374 07-053931 07-05597

07-054672 07-05587

This Order is immediately effective upon its entry.

DETROIT.3083676.1

1 Permacel and Piqua are related companies which should be assigned to the same mediator. 2 The two TRW cases should be assigned to the same mediator.