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

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

MOTION OF COLLINS & AIKMAN LITIGATION TRUST TO AMEND THE AMENDED MEDIATION ORDER SOLELY TO EXTEND THE DATE BY WHICH MEDIATIONS ASSIGNED TO PEPPER HAMILTON LLP ATTORNEYS MUST TERMINATE FROM JUNE 30, 2008 TO SEPTEMBER 30, 2008 The motion of the Collins & Aikman Litigation Trust (the Trust), as successor in interest to Collins & Aikman Corporation and its affiliated debtors (collectively, the Debtors), as plaintiffs in the preference actions commenced under section 547(b) of the Bankruptcy Code (the Preference Actions), respectfully states as follows: PRELIMINARY STATEMENT 1. Pursuant to this Courts Amended Order Regarding Mediation

dated November 30, 2007 (the "Amended Mediation Order"), procedures were established for the mediation of the Preference Actions. The Mediation Order requires, among other things, that the process be concluded by June 30, 2008. This motion (the Motion) requests that the Court extend the deadline to conclude mediations of the

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Preference Actions assigned to the Pepper Hamilton Mediators 1 through September 30, 2008. The Trust has consulted with the Pepper Hamilton Mediators concerning the relief sought herein and has been authorized to represent that the Pepper Hamilton Mediators support and concur with the requested extension. 2. The Trust believes that the mediation process established by this

Court has been instrumental to, and overwhelmingly successful in, contributing to the expeditious resolution of the Preference Actions. Already, of the 1,170 Preference Actions originally commenced by the Debtors, almost 1,000 Preference Actions have been resolved by the Trust, whether by settlement, dismissal or entry of default judgments. As of May 13, 2008, less than 200 Preference Actions remained pending and unresolved. 3. In the event the requested extension is granted, the Trust believes

that fewer than 50 Preference Actions will remain open, unresolved and subject to mediation as of June 30, 2008. These remaining actions generally involve either the largest dollar amounts and/or discrete complex legal and/or factual issues that require more analysis and/or fact intensive diligence on the part of both the Trust and the defendants in such actions. Rather than risk premature participation in a mediation process to meet the June 30 deadline, the Trust submits that a relatively brief extension through September 30, 2008 is appropriate and will be beneficial for all parties involved.

Pursuant to the Amended Mediation Order and subsequent Order of this Court dated February 11, 2008, the following members of Pepper Hamilton LLP were appointed as mediators of Preference Actions assigned by the Court: Robert Hertzberg, Barbara Rom, David Fournier, David Stratton and Henry Jaffe (collectively, the Pepper Hamilton Mediators).

4.

The requested extension will give the defendants and the Trust a

meaningful, but reasonable, period of time to perform diligence and to participate in a mediation process with a greater likelihood of success. 5. For the reasons set forth above and those that follow, the Trust

believes that good cause exists to grant the relief requested and extend the mediation process to September 30, 2008 for the Preference Actions assigned to the Pepper Hamilton Mediators. JURISDICTION 6. 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). 7. 8. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. The statutory bases for the relief requested herein are section 105 of

the Bankruptcy Code, 11 U.S.C. 101, et seq. (the Bankruptcy Code), and Rule 9006 of the Federal Rules of Bankruptcy Procedure. BACKGROUND 9. On May 17, 2005 (the Petition Date), the Debtors filed voluntary

petitions for relief under chapter 11 of title 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Michigan (the Bankruptcy Court). 10. On May 1, 2007, this Court entered Orders Establishing Procedures

and Deadlines for Adversary Proceedings commenced by the Debtors in the Debtors bankruptcy cases (the Procedures Order). Among other things, the Procedures Order

established pleading and discovery schedules for three groups of Preference Actions designated as Track I, Track II and Track III. See Docket Nos. 4595-97. 11.
2

From May 9, 2007 through May 17, 2007, the Debtors commenced

approximately 1,170 Preference Actions. Since that time, the Debtors, and, thereafter, the Trust, have resolved nearly 1,000 of the actions. 12. On July 12, 2007, the Bankruptcy Court confirmed the Debtors

First Amended Joint Plan (the Plan), and the effective date under the Plan occurred on October 12, 2007. Pursuant to the Plan, the Trust has succeeded to the interests of the Debtors as plaintiff in the Preference Actions. 13. On October 19, 2007, the Court entered the Order Regarding

Mediation (Mediation Order) establishing procedures for mediating the Preference Actions and required that all mediations be concluded by May 30, 2008. 14. On November 30, 2007, the Court entered an order amending the

Mediation Order (the Amended Mediation Order), which Order modified certain of the mediation procedures and required that all mediations be concluded by June 30, 2008. The Amended Mediation Order provides that the deadline may be extended upon motion for good cause. Amended Mediation Order at p. 3, 10. 15. As of May 13, 2008, almost 1,000 of the Preference Actions have

been resolved by the Trust, whether through settlement, dismissal or entry of a default judgment. Consequently, less than 200 Preference Actions currently remain pending and unresolved.

Track I actions seek to recover less than $45,000, Track II actions seek to recover between $45,000 and $750,000, and Track III actions seek to recover more than $750,000.

16.

By June 30, 2008 (the deadline initially set in the Mediation Order

for completing the mediation process), the Trust believes that approximately 50 Preference Actions -- all of them assigned to the Pepper Hamilton Mediators -- will remain open and unresolved and subject to mediation. Notably, the Trust believes that all of the so-called Track I and lesser Track II Preference Actions assigned to the other mediators will have been resolved by June 30. 17. Despite the best efforts of all parties involved in the process,

approximately 50 Preference Actions probably will remain to be mediated after June 30, 2008 -- if the mediation of those cases is to be meaningful and successful. As noted above, these remaining actions generally are those involving the largest dollar amounts and/or complex legal and factual issues, such as, for example, the validity and enforceability of alleged tooling liens, and, thus, such cases require more diligence by the parties to prepare for mediation. RELIEF REQUESTED AND BASIS THEREFOR 18. The Trust respectfully requests that the Court extend the mediation

deadline for those Preference Actions assigned to the Pepper Hamilton Mediators from June 30, 2008 through September 30, 2008 to enable the Trust and the defendants to perform additional diligence so that the parties may engage in a meaningful mediation process with a higher likelihood of success. 19. The Amended Mediation Order specifies a June 30,2008 deadline

for completion of the mediation of all preference actions. However, it also provides that the deadline may be extended upon motion for good cause. 20. The Trust proposes that the deadline by which the mediation of the

Preference Actions assigned to the Pepper Hamilton Mediators be concluded be

extended through September 30, 2008 to allow for additional diligence by the parties. Such an extension also takes into account that we are approaching the time when many professionals, clients and other parties-in-interest involved in the remaining Preference Actions and mediation process will take vacations and the automotive industry, generally, closes for a number of weeks. 21. The Trust respectfully submits that extending the mediation

deadline is just and appropriate under the circumstances and good cause exists for the requested extension. First, the Trust has done its best under difficult circumstances to resolve all of the Preference Actions and, it submits, has already achieved outstanding results in that regard. In under six months, approximately 1,000 Preference actions have been mediated and resolved. Second, extending the mediation deadline will help ensure that the process as to the remaining Preference Actions is meaningful and best geared to promote successful mediations. Third, extending the mediation deadline will help make resolution of the Preference Actions less burdensome to all of the parties, including the Court, by minimizing future litigation that will be necessary if the matters are not consensually resolved. Fourth, the Trust respectfully submits that no party will be prejudiced by a three-month extension of the mediation deadline. 22. For all of the foregoing reasons, the Trust respectfully requests that

the Motion be granted in all respects. WAIVER OF MEMORANDUM OF LAW AND STATEMENT CONCERNING CONCURRENCE OF COUNSEL 23. This Motion does not raise novel issues of law and the legal basis

for the relief requested is set forth above. Accordingly, the Trust respectfully requests that the Court waive the requirement in Rule 9014(e) of this Courts Local Bankruptcy

Rules that the Motion be accompanied by a separate brief. Nevertheless, the Trust reserves the right to file a separate memorandum of law in support of this Motion. 24. The Trust further respectfully requests that the Court waive the

requirement in Local Bankruptcy Rule 9014(g) that the Trust seek the concurrence of counsel because doing so for all affected parties would be impractical or impossible. To ensure that any parties potentially impacted by the relief sought herein have an opportunity to respond, the Trust will serve a copy of this Motion by regular mail on counsel for the approximately 200 defendants with actions that had not been resolved or mediated to conclusion as of May 13, 2008. As previously noted, the Pepper Hamilton Mediators support and concur with the relief requested herein. NOTICE 25. As noted above, the Trust will serve a copy of this Motion by

regular mail on counsel for the approximately 200 defendants with Preference Actions that had not been resolved or mediated to conclusion as of May 13, 2008. The Trust respectfully submits that no other or further notice of the relief sought herein or to be granted by the Order is required. NO PRIOR REQUEST 26. No prior motion for the relief requested herein has been made to

this or any other Court.

WHEREFORE, the Trust respectfully requests the entry of an Order, substantially in the form attached hereto as Exhibit A, (i) extending the deadline to mediate the remaining Preference Actions to be mediated by Pepper Hamilton Attorneys through September 30, 2008, and (ii) granting such other and further relief as this Court deems just and appropriate. DATED: New York, New York May 21, 2008

COLLINS & AIKMAN LITIGATION TRUST, as successor-in-interest to Collins & Aikman Corporation, et al., By its Special Counsel, TOGUT, SEGAL & SEGAL LLP By: /s/ Scott E. Ratner NEIL BERGER (NB-3599) SCOTT E. RATNER (SER-0015) Members of the Firm One Penn Plaza, Suite 3335 New York, New York 10119 (212) 594-5000

EXHIBIT A

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

SECOND AMENDED ORDER EXTENDING THE DEADLINE TO CONCLUDE MEDIATIONS PURSUANT TO THE AMENDED ORDER REGARDING MEDIATION SOLELY FOR CASES ASSIGNED FOR MEDIATION TO DESIGNATED PEPPER HAMILTON LLP ATTORNEYS Upon the motion (the Motion) of the Collins & Aikman Litigation Trust for an order extending the time to conclude mediations provided for in the Amended Order Regarding Mediation dated November 30, 2007 (the "Amended Mediation Order"); and it appearing that good cause exists to extend the deadline to conclude mediations based upon the information contained in the Motion; and it further appearing that entry of this Order is appropriate under Rule 9006 of the Federal Rules of Bankruptcy Procedure: 1. The deadline for the conclusion of mediations set forth in

paragraph 10 of the Mediation Order is hereby extended, solely as to the actions assigned to the Pepper Hamilton Mediators (as defined in the Motion), to and including September 30, 2008. 2. The foregoing date for concluding mediations may be further

extended upon motion for good cause.

3.

The Court retains jurisdiction with respect to all matters arising

from or related to the implementation of this Order.

EXHIBIT B

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

NOTICE AND OPPORTUNITY FOR HEARING REGARDING MOTION OF COLLINS & AIKMAN LITIGATION TRUST TO AMEND THE AMENDED MEDIATION ORDER SOLELY TO EXTEND THE DATE BY WHICH MEDIATIONS ASSIGNED PEPPER HAMILTON LLP ATTORNEYS MUST TERMINATE FROM JUNE 30, 2008 TO SEPTEMBER 30, 2008 The Collins & Aikman Litigation Trust (the Trust), as successor in interest to Collins & Aikman Corporation and its affiliated debtors (collectively, the Debtors), has filed a Motion (the Motion) with the Court requesting that the Court extend the deadline to conclude mediations of preference actions assigned to the Pepper Hamilton Mediators (as defined in the Motion) through September 30, 2008. Your rights may be affected. You should read the Motion papers carefully and discuss them with your attorney, if you have one in these bankruptcy cases. (If you do not have an attorney, you may wish to consult one.) If you do not want the Court to grant the relief sought in the Motion, or if you want the Court to consider your views on the Motion, within 15 days, you or your attorney must: 1. your position at:1 File with the Court a written response or an answer, explaining United States Bankruptcy Court Eastern District of Michigan 211 West Fort Street Detroit, Michigan 48226

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

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. All attorneys are required to file pleadings electronically. You must also mail a copy to: Togut, Segal & Segal LLP Attn: Scott E. Ratner One Penn Plaza, Suite 3335 New York, New York 10119 (212) 594-5000 2. If a response or an 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. DATED: New York, New York May 21, 2008 COLLINS & AIKMAN LITIGATION TRUST, as successor-in-interest to Collins & Aikman Corporation, et al., By its Special Counsel, TOGUT, SEGAL & SEGAL LLP By: /s/ Scott E. Ratner NEIL BERGER (NB-3599) SCOTT E. RATNER (SER-0015) Members of the Firm One Penn Plaza, Suite 3335 New York, New York 10119 (212) 594-5000