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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

STATEMENT OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS REGARDING DEBTORS FIFTH MOTION FOR AN ORDER EXTENDING THE EXCLUSIVITY PERIODS TO FILE A CHAPTER 11 PLAN AND TO SOLICIT VOTES THEREON The Official Committee of Unsecured Creditors (the Committee) of Collins & Aikman Corporation, et al. (collectively, the Debtors) hereby submits this statement (the Statement) regarding the Debtors Fifth Motion for an Order Extending the Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon (the Fifth Extension Motion). In response to the Motion, the Creditors Committee respectfully submits as follows: BACKGROUND 1. On May 17, 2005 (the Petition Date), each of the Debtors filed with this Court a

voluntary petition for relief under chapter 11 of title 11 of the United States Code (the Bankruptcy Code). 2. Since the Petition Date, the Debtors have continued in possession of their

properties, and have continued to operate and manage their businesses as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.

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3.

On May 24, 2005, pursuant to section 1102(a) of the Bankruptcy Code, the United

States Trustee for the Eastern District of Michigan appointed the Committee.1 4. Pursuant to Bankruptcy Code section 1121, the Debtors exclusive Plan Proposal

Period2 was originally scheduled to expire on September 14, 2005. The Debtors Solicitation Period was originally scheduled to expire on November 13, 2005. 5. On August 26, 2005, the Debtors filed the Motion for an Order Extending the

Debtors Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon (the First Extension Motion). On September 12, 2005, this Court entered an order extending the Debtors Plan Proposal Period through and including January 12, 2006 and extended the Debtors Solicitation Period through and including March 13, 2006. 6. On December 21, 2005, the Debtors filed the Second Motion for an Order

Extending the Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon (the Second Extension Motion). On January 6, 2006, this Court entered an order approving the Second Extension Motion and extended the Debtors Plan Proposal Period through and including May 1, 2006, and the Debtors Solicitation Period through and including June 30, 2006. 7. On April 26, 2006, the Debtors filed the Third Motion for an Order Extending the

Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon (the Third Extension Motion). On May 11, 2006, the Court entered an order approving the Third Extension Motion and extended the Debtors Plan Proposal Period through and including July 29, 2006, and the Debtors Solicitation Period through and including September 27, 2006.

The Committee members are as follows: Third Avenue Management, Bank of New York, Delphi Corporation, Law Debenture Trust Company of New York, Barclays Capital, Pension Benefit Guaranty Corporation, The Brown Corporation of America, UAW International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, and United Steelworkers. 2 Capitalized terms not defined herein shall have the meanings ascribed to them in the Motion.

8.

On June 28, 2006, the Debtors filed the Fourth Motion for an Order Extending the

Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon (the Fourth Extension Motion) further extending the Plan Proposal Period for an additional sixty days from July 29, 2006 through and including September 27, 2006, and the Debtors Solicitation Period from September 27, 2006 through and including November 27, 2006. On July 14, 2006, this Court entered an order approving the Debtors Fourth Extension Motion. 9. On August 30, 2006, the Debtors filed the Joint Plan of Reorganization of Collins

& Aikman Corporation and its Debtor Subsidiaries (the Proposed Plan) along with the Disclosure Statement for the Joint Plan of Reorganization of Collins & Aikman Corporation and its Debtor Subsidiaries (the Proposed Disclosure Statement). 10. On September 8, 2006, the Debtors filed the Debtors Fifth Extension Motion. STATEMENT 11. As the Court is aware, the Committee has significant concerns with respect to a

number of provisions contained in the Proposed Plan. The Committee has specific objections to, among other things, the proposed treatment of unsecured creditors under the Proposed Plan. The Debtors, the Committee and the Debtors pre-petition lenders have been engaged in good-faith negotiations to resolve consensually all material outstanding issues. While, to date, the parties have been unable to reach a global settlement with respect to the parties outstanding issues, the parties negotiations are continuing and the Committee is hopeful that a consensual resolution may be reached. As such, in order to provide the parties with additional time to resolve their disputes and avoid the filing of an objection by the Committee to the relief requested in the Fifth Extension Motion, the Debtors, at the request of the Committee, agreed to reduce their request to extend the Exclusivity Periods from 60 days to 30 days. The Committee is hopeful that during

this additional 30-day period the parties will reach a consensual resolution to their disputes. In the event the parties are not successful in resolving their differences during this period, however, it is unlikely that the Committee will consent to further extensions of the Debtors Exclusivity Periods. 12. Based on the foregoing, the Committee expresses no objection to a 30-day

extension of the Debtors Exclusivity Periods. Of course, the Committee expressly reserves of all of its rights to raise in the future any issues relating to the Proposed Plan, the Proposed Disclosure Statement and the Debtors exclusive right to file or solicit approval of any plan of reorganization in these cases, including, without limitation, its rights to seek termination of the Exclusivity Periods.. Dated: September 22, 2006 Respectfully Submitted,

By: _/s/ Philip C. Dublin AKIN GUMP STRAUSS HAUER & FELD LLP Michael S. Stamer, Esquire Philip C. Dublin, Esquire Alexis Freeman, Esquire 590 Madison Avenue New York, NY 10022-2524 Telephone: (212) 872-1000 Facsimile: (212) 872-1002 BUTZEL LONG Thomas B. Radom (P24631) 100 Bloomfield Hills Parkway, Suite 200 Bloomfield Hills, MI 48304 Telephone: (248) 258-1413 Facsimile: (248) 258-1439 Email: radom@butzel.com Counsel for the Official Committee of Unsecured Creditors of Collins & Aikman Corporation, et al.

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