THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION - DETROIT ) In re: ) Chapter 11 ) Case No.

05-55927 (SWR) COLLINS & AIKMAN CORPORATION, et al., ) (Jointly Administered) ) (Tax Identification #13-3489233) ) Hon. Steven W. Rhodes Debtors. ) ) STIPULATION FOR ENTRY OF AN ORDER GRANTING RELIEF FROM ORDER STAYING ADVERSARY PROCEEDINGS The Plaintiffs and Defendants under Adversary Proceeding Nos. 07-05293, 0704921, 07-04501, 07-05011 and 07-05137 (the "Adversary Proceedings"), by their respective undersigned counsel, stipulate and agree as follows (the Stipulation): 1. On September 5, 2008, the Defendants filed a Request for Relief

from Order Staying Adversary Proceedings (the Motion) [Docket No. 10010]. With the Motion, Defendants seek relief from the stay so they may file a summary judgment motion. 2. Plaintiffs and Defendants agree that the stay should be lifted to allow

Defendants to move for summary judgment. 3. Plaintiffs and Defendants also agree that before a motion for

summary judgment will be made, the Defendants will provide Plaintiffs with limited discovery, as agreed to by the parties, to narrow the issues for the Court. The parties anticipate that this discovery period will last 45 days (subject to extension by agreement among the parties). 4. Plaintiffs and Defendants further agree that at the conclusion of the

45-day period, they will negotiate a mutually acceptable briefing schedule for the filing of

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Defendants summary judgment motion, if any. 5. Plaintiffs and Defendants stipulate to the entry of the attached

proposed Order that, among other things, lifts the stay in the Adversary Proceedings. DATED: New York, New York September 23, 2008 C&A 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 SCOTT E. RATNER (SER-0015) Members of the Firm One Penn Plaza New York, New York 10119 (212) 594-5000 DATED: Detroit, Michigan September 22, 2008 DICKINSON WRIGHT PLLC By: /s/ Dawn R. Copley DAWN R. COPLEY, Esq. 500 Woodward Avenue, Suite 4000 Detroit, MI 48226-3425 (313) 223-3500 (Counsel for Defendants)

THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION DETROIT

In re: COLLINS & AIKMAN CORPORATION, et al., Debtors.

) ) ) ) ) ) ) )

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

ORDER GRANTING RELIEF FROM STAY OF ADVERSARY PROCEEDINGS This matter having come upon for consideration upon the Stipulation for Entry of Order Granting Relief from Order Staying Adversary Proceedings (the Stipulation) by Plaintiffs and Defendants under Adversary Proceeding Nos. 07-05293, 07-04921, 07-04501, 07-05011 and 07-05137 (the "Adversary Proceedings") no further notice or hearing being necessary, and the Court being fully advised in the premises: IT IS HEREBY ORDERED that 1. The stay imposed in the Adversary Proceedings is lifted so that

Defendants can move for summary judgment. 2. Prior to the filing of any summary judgment motion, the Defendants

will provide Plaintiffs with limited discovery, as agreed to by the parties, to narrow the issues for the Court. This discovery period will last 45 days (and it is subject to

extension by agreement among the parties).

3.

At the conclusion of the 45-day period, the parties will negotiate a

mutually acceptable briefing schedule for the filing of Defendants summary judgment motion, if any.