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 PROTECTIVE RELIEF FROM THE AUTOMATIC STAY TO PERMIT INSURER TO ADVANCE FURTHER DEFENSE COSTS TO DIRECTORS, OFFICERS AND EMPLOYEES 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 for protective relief from the automatic stay to permit the Debtors insurer to advance further defense costs to certain

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.

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directors, officers and employees under the Debtors insurance policy [Docket No. 8244] (the D&O Insurance 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. As this Court is aware, certain of the Debtors former officers and former and

current directors (collectively, the D&O Beneficiaries) are involved in myriad securities investigations and related actions pending in federal and state courts (collectively, the Court Actions). The Court Actions have led to the D&O Beneficiaries incurring significant defense costs and fees.
2 Capitalized terms used but not otherwise defined in this Ex Parte Motion have the meanings assigned in the D&O Insurance Motion.

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7.

On February 1, 2006, the Debtors filed a motion for protective relief from the

automatic stay pursuant to which the Debtors requested that the Court grant the Primary Insurer relief from the automatic stay to pay the defense costs incurred by the D&O Beneficiaries in accordance with the Primary D&O Policy [Docket No. 2127]. On March 23, 2006, the Court entered an order under which the Primary Insurer was permitted to advance defense costs under the Primary D&O Policy to the D&O Beneficiaries [Docket No. 2484]. 8. In connection with the Court Actions, the Primary Insurer has advanced defense

costs to the D&O Beneficiaries in the aggregate amount of $15 million, thereby exhausting the coverage available to the D&O Beneficiaries under the Primary D&O Policy. 9. As a result, contemporaneously with the filing of this Ex Parte Motion, the

Debtors filed the D&O Insurance Motion under which the Debtors request that the Court grant relief from the automatic stay so that the Excess Insurer may advance under the Excess D&O Policy any additional defense costs incurred by the D&O Beneficiaries in defending against the Court Actions. Relief Requested 10. 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 D&O Insurance Motion to September 26, 2007 at 12:00 p.m. prevailing Eastern Time and schedule an expedited hearing to be conducted at the omnibus hearing on September 27, 2007 at 2:00 p.m. prevailing Eastern Time. Basis for Relief 11. As set forth in more detail in the D&O Insurance Motion, failure to lift the

automatic stay would impair the ability of the D&O Beneficiaries to continue to mount a considerable defense to the Court Actions. The inability of the D&O Beneficiaries to continue to 3
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properly defend the securities claims only increases the likelihood that adverse findings and judgments will occur in the Court Actions that may attach to the Debtors, thereby precluding the Debtors from properly defending themselves in any future securities actions. Additionally, it is likely that without obtaining an advance of their defense costs from the Excess Insurer, the D&O Beneficiaries will assert indemnification claims against the Debtors for such defense costs. 12. For the reasons set forth above and in the D&O Insurance Motion, good and

sufficient cause exists to consider the D&O Insurance Motion on an expedited basis. 13. 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, which includes the authority to determine appropriate notice for conducting a hearing on the matters presented by the D&O Insurance Motion.

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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 D&O Insurance Motion to September 26, 2007, at 12:00 p.m. prevailing Eastern Time, (b) scheduling an expedited hearing on the D&O Insurance 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 24, 2007 KIRKLAND & ELLIS LLP /s/ Scott R. Zemnick 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

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EXHIBIT A

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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 PROTECTIVE RELIEF FROM THE AUTOMATIC STAY TO PERMIT INSURER TO ADVANCE FURTHER DEFENSE COSTS TO DIRECTORS, OFFICERS AND EMPLOYEES 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 for an order for protective relief from the automatic stay to permit the Debtors insurer to advance further defense costs to certain directors, officers and employees under the Debtors insurance policy [Docket No. 8244] (the D&O Insurance

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.

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Motion);2 it appearing that the Court has jurisdiction 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 D&O Insurance 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

D&O Insurance Motion shall be September 26, 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 D&O Insurance 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.

2 3

Capitalized terms used but not otherwise defined in this Order have the meanings assigned in the D&O Insurance Motion. 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].

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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.

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