In The United States Bankruptcy Court Eastern District of Michigan Southern Division

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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

EX PARTE MOTION FOR CERTAIN ADMINISTRATIVE AMENDMENTS TO ORDER FOR PROTECTIVE RELIEF FROM THE AUTOMATIC STAY TO PERMIT INSURERS TO ADVANCE DEFENSE COSTS TO DIRECTORS, OFFICERS AND EMPLOYEES The above-captioned debtors (collectively, the Debtors) hereby move the Court (the Ex Parte Motion) for the entry of an order, substantially in the form of Exhibit A, for certain administrative amendments to order for protective relief from the automatic stay to permit insurers to advance defense costs to directors, officers and employees. In support of this Ex Parte Motion, the Debtors respectfully state as follows:

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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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 section 105 of the

Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code) and Rule 9007 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules). Background 4. 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 operating their businesses and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these cases. 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. On February 1, 2006, the Debtors filed a motion for protective relief from the

automatic stay to permit insurers to advance defense costs to directors, officers and employees [Docket No. 2127] (the D&O Motion).2 On March 23, 2006, the Court entered an order granting the relief requested in the D&O Motion [Docket No. 2484] (the D&O Order). Pursuant to the D&O Order, prior to advancing any defense costs of the D&O Beneficiaries or

Capitalized terms used but not otherwise defined in this Ex Parte Motion have the meanings set forth in the D&O Motion.

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their professionals, the relevant professional has to submit to the Court and the Core Group copies of all billings and invoices for which payment is sought. Relief Requested 7. For the administrative convenience of the Court, the Clerk of the Court, the

Debtors and certain parties in interest, the Debtors request that the Court amend the D&O Order to require that, prior to advancing any defense costs of the D&O Beneficiaries or their professionals, the relevant professional submit copies of any invoices for which payment is sought only to (a) the Debtors, (b) the Committee and (c) the agents for the Debtors prepetition and postpetition senior, secured lenders (collectively, the Agents). Basis for Relief 8. Subsequent to the entry of the D&O Order, the Debtors, after discussions with the

Clerk of the Court, the Committee and counsel representing certain of the D&O Beneficiaries determined that amending the D&O Order to limit service of the invoices to (a) the Debtors, (b) the Committee and (c) the Agents would be in the interests of all parties and the Debtors estates. 9. Amending the D&O Order will alleviate the expense and burden on each relevant

professional, which costs are passed on to the D&O Policy, of having to serve invoices on all members of the Core Group (approximately 200 parties) and file the same invoices with the Court, while still allowing the primary constituencies in the chapter 11 cases to monitor such defense costs. Additionally, the Debtors engaged in discussions with the Clerk of Court

regarding this issue, and as a result of those discussions, it became clear that these amended service procedures would reduce the administrative inconvenience associated with such counsel (many of whom are not admitted to this Court) filing numerous invoices with the Court.

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10.

Finally, prior to filing the Ex Parte Motion, the Debtors discussed and received

the support of the Committee, the Agents and the Insurer for amending the D&O Order in the manner described in the Ex Parte Motion. 11. 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 the matters presented in the D&O Order. See Fed. R. Bankr. P. 9007.

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WHEREFORE, the Debtors respectfully request the entry of an order, substantially in the form attached hereto as Exhibit A, (a) amending the D&O Order to limit service of invoices related to the advance of defense costs of the D&O Beneficiaries and their professionals and (b) granting such other and further relief as this Court deems appropriate. Dated: April 13, 2006 KIRKLAND & ELLIS LLP /s/ Ray C. Schrock 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) Marc J. Carmel (IL 6272032) 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 FOR CERTAIN ADMINISTRATIVE AMENDMENTS TO ORDER FOR PROTECTIVE RELIEF FROM THE AUTOMATIC STAY TO PERMIT INSURERS TO ADVANCE DEFENSE COSTS TO DIRECTORS, OFFICERS AND EMPLOYEES Upon the ex parte motion (the Ex Parte Motion)2 of the above-captioned debtors (collectively, the Debtors) for certain administrative amendments to order for protective relief from the automatic stay to permit insurers to advance defense costs to directors, officers and employees [Docket No. ______]; it appearing that the relief requested is in the best interest of

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. Capitalized terms used but not otherwise defined in this Order have the meanings set forth in the Ex Parte Motion.

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the Debtors estates, their creditors and other parties in interest; 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; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED 1. 2. The Ex Parte Motion is granted in its entirety. Paragraph 3 of the D&O Order is amended to state: prior to advancing any

defense costs of the D&O Beneficiaries or their professionals, the relevant professional shall submit to (a) the Debtors, (b) the Committee and (c) the Agents copies of all billings and invoices for which payment is sought, together with advices of payment and documents incident thereto (redacted for privileged matters). 3. The Debtors and the Insurer are authorized and empowered to take all actions

necessary to implement the relief granted in this Order. 4. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 5. The Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

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