THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------------------- x In re: ) ) COLLINS & AIKMAN

CORPORATION, et al.., ) ) Debtors. ) ) ----------------------------------------------------------------------- x Chapter 11 Case No 05-55927(SWR) Jointly Administered Hon. Walter Shapero

RESPONSE OF HARITA INFOSERVE LTD. TO THE DEBTORS TWELFTH OMNIBUS OBJECTION TO CLAIMS (LATE FILED CLAIMS)

Harita Infoserve Ltd. (Harita), by and through its undersigned counsel, hereby submits this response to the Debtors Twelfth Omnibus Objection to Claims (Late Filed Claims) and states as follows: Background 1. On May 17, 2005 (the Petition Date), the Debtors filed their voluntary petitions

for relief under Chapter 11 of the Bankruptcy Code. The Debtors are continuing in possession their property and operating and managing their businesses, as a debtor in possession, pursuant to sections 1107 and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these cases. 2. On May 24, 2005, the United States Trustee appointed an official committee of

unsecured creditors pursuant to 1102 of the Bankruptcy Code. 3. On November 22, 2005 [docket item #1803], this Court entered an order (the

Bar Date Order) establishing January 11, 2005 as the deadline by which creditors, subject to certain stated exceptions, were required to file their proofs of claim (the Bar Date) 4. Prior to the Bar Date, Harita was in conversations with representatives of the

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Debtors and General Motors in an attempt to resolve the amounts owed to them. At that time, Harita believed that its claims against the Debtor were entirely post-petition and thus, Harita would not be required to file a proof of claim. Harita continued working with representative of the Debtors and General Motors on resolving amounts owed and receiving payment. 5. After the Bar Date had passed, Harita was informed that approximately $240,000

of the amounts due from the Debtors were actually pre-petition obligations and therefore, the Debtor would be unable to pay those amounts. Upon being informed of this fact, Harita timely prepared and submitted claim number 8462. Excusable Neglect 6. Haritas filing of a proof of claim after the bar date should be considered a

product of excusable neglect in accordance with the established doctrine set forth in Pioneer Inv. Services Co. v. Brunswick Associated, Ltd. Partnership (507 U.S. 380) (1993). 7. The United States Supreme Count has outlined four major factors to analyze in

determining whether excusable neglect supports an extension of time; (i) the danger of prejudice to the debtor; (ii) the length of delay and its impact on the bankruptcy proceedings; (iii) the reason for the delay (including whether the claimant had control over such delay); and (iv) whether the claimant acted in good faith. Pioneer at 395. factors favor allowing Haritas proof of claim as timely. 8. There is no danger of prejudice to the Debtors in allowing Haritas late filed proof The weight of the four Pioneer

of claim. While the Debtors have proposed a first amended plan of reorganization (the Plan) the Plan has yet to be confirmed and distributions on pre-petition obligations have not commenced. 9. The length of delay was reasonable in light of the circumstances and the reason

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for delay was outside of the control of Harita.

While Harita filed its proof of claim

approximately five months after the established Bar Date, it did so timely upon being informed that it had pre-petition claims against the Debtors. Prior to that time, Harita had no reason to believe that there were pre-petition obligations -- evidenced by the fact that Harita was not listed on the Debtors Schedules. 10. Harita clearly acted in good faith. Good faith is defined as a opposite of bad faith.

The Sixth Circuit Court of Appeals has held that "bad faith" is defined as "not simply bad judgment or negligence, but rather it implies the conscious doing of a wrong because of dishonest purpose or moral ambiguity. United States v. Heavrin, 330 F.3d 723, 728 (6th Cir. 2003). There is nothing on the record or in the series of events leading up to this dispute which would suggest that Harita has acted with anything other than good faith. 11. Accordingly, Haritas proof of claim should be deemed to have been timely

filed, and any neglect on the part of Harita in not filing its claim earlier should be deemed excusable under the Pioneer factors set forth above.

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WHEREFORE, the Harita Infoserve, Ltd. prays that this Court enter an order overruling the Debtors Twelfth Omnibus Objection with respect to Haritas claim, together with any other additional relief that this Court deems just and equitable. KERR RUSSELL AND WEBER, P.L.C. Dated: February 8, 2007 By: /s/ Kevin L. Larin Kevin L. Larin (P63557) 500 Woodward Avenue, Suite 2500 Detroit, Michigan 48226 Telephone: (313) 961-0200 Facsimile: (313) 963-7099 E-mail:kll2@krwlaw.com

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THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------------------- x In re: ) ) COLLINS & AIKMAN CORPORATION, et al.., ) ) Debtors. ) ) ----------------------------------------------------------------------- x Chapter 11 Case No 05-55927(SWR) Jointly Administered Hon. Walter Shapero

CERTIFICATE OF SERVICE Kevin L. Larin certifies that on the 30th of January, 2007, he served the (i) Response of Harita Infoserve Ltd. to the Debtors Twelfth Omnibus Objection to Claims (Late Filed Claims); and (ii) this Certificate of Service upon the following parties by electronic mail. Richard M. Cieri David L. Eaton Ray C. Schrock Marc J. Carmel Joseph M. Fischer rcieri@kirkland.com deaton@kirkland.com rschrock@kirkland.com mcarmel@kirkland.com jfischer@carsonfischer.com

I hereby declare under penalty of perjury that, to the best of my knowledge, information and belief, the above statement is true. /s/ Kevin L. Larin _______ Kevin L. Larin (P63557) KERR, RUSSELL AND WEBER, PLC 500 Woodward Ave. Suite 2500 Detroit, MI 48226 (313) 961-0200

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