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
Hearing Date: January 25, 2007 at 11:00 a.m.

DEBTORS OMNIBUS OBJECTION STATUS REPORT IN SUPPORT OF MOTION FOR AN ORDER APPROVING THE DEBTORS DISCLOSURE STATEMENT AND RELIEF RELATED THERETO The above-captioned debtors (collectively, the Debtors) respectfully submit this Omnibus Objection Status Report in Support of Motion for Entry of an Order Approving the Debtors Disclosure Statement and Relief Related Thereto (the Motion) and to advise the Court of the current status of the objections (the Objections) filed to the Motion and the Disclosure Statement filed with the Court on December 22, 2006 (the Disclosure Statement).
1 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. 05-55991; 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. 05-55964; 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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0555927070122000000000011

Objection Status Report As an initial and important matter, the Debtors are pleased to advise the Court that the Debtors, the official committee of unsecured creditors (the Committee) and the unofficial steering committee for the Debtors senior, secured prepetition lenders (the

Steering Committee) have reached an agreement in principle with respect to the terms of the Debtors plan, which agreement in principle the Debtors intend to describe to the Court in further detail at the January 25, 2007 hearing. As such, the Debtors now have the support of their most significant creditor constituencies and customers regarding the terms of a plan. The Debtors intend to file a revised Disclosure Statement and plan on January 24, 2007, which will reflect the Committee accord, as well as other changes made in response to informal and formal objections to the Disclosure Statement. Similarly, the Debtors are pleased to report that they are prepared to move forward on the hearing to approve the Disclosure Statements adequacy with relatively few objections filed, and the Debtors expect that most of the Objections will be resolved prior to the Disclosure Statement hearing. Specifically, after noticing in excess of 100,000 parties of the Disclosure Statement filing, hearing date and objection deadline, only 17 parties filed an objection to the Disclosure Statement. For the convenience of the Court and parties in interest, the Debtors have attached a chart as Exhibit A to this Objection Status Report that shows each Objection, summarizes the basis for the Objection and the current status of the Objection. As noted in the chart, the Debtors already have resolved certain Objections and they are in the process of resolving several others. The Debtors respectfully submit that, for the reasons set forth in the

Motion and as will be demonstrated on the record, any Objections that remain unresolved at the hearing should be overruled.2

Dated: January 22, 2007

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) Lawrence A. Lichtman (P35403) 4111 West Andover Road West - Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors

The Debtors intend to file a revised Exhibit A with the Court on Wednesday, January 24, 2007 to reflect any updates to the Objection resolution process.

EXHIBIT A

EXHIBIT A OBJECTING PARTY

State of Michigan Unemployment Insurance Agency

BASIS FOR OBJECTION

Docket No. 3894 Disclosure Statement (D.S.) does not indicate if all post-petition unemployment taxes have been paid D.S. does not disclose liabilities of New Baltimore Holdings, LLC and disposition under plan New Baltimore has failed to file tax reports for 3rd and 4th quarter of 2005 and through 2006 If business has stopped, need to file notice of discontinuance to preclude alleged ongoing liability

STATUS
The Debtors and the Objecting Party are exchanging proposals to resolve this Objection

RLI Insurance

Docket No. 3909 D.S. does not adequately address workers compensation obligations D.S. does not address amount of workers comp liability or how these claims will be treated under the plan D.S. does not provide information regarding Bonds and Letters of Credit issued to C&A for North Carolina and Rhode Island Releases in the plan should not include claims arising under letters of credit obligations (specifically JPMorgan) Docket No. 3905 D.S. does not provide adequate information concerning Debtors intention with respect to certain environmental sites in New Hampshire Cannot determine if post-consummation trust will pay costs of environmental clean-up No disclosed remedy for the environmental authorities if the sites are not sold in five years (when the post consummation trust is set to terminate)

Resolved by additional disclosure

State of New Hampshire Department of Environmental Services

The Debtors and the Objecting Party are exchanging proposals to resolve this Objection

OBJECTING PARTY
State of Michigan Department of Environmental Quality (MDEQ)

BASIS FOR OBJECTION

Expected distribution to unsecured claims are not discussed Docket No. 3911 D.S. does not provide adequate disclosure about how environmental contamination on the Wickes Manufacturing Company site will be handled D.S. does not disclose how MDEQs claims will be treated D.S. does not disclose recoveries to creditors Plan in facially unconformable because it does not comply with Michigan environmental laws Plan cannot abandon property in violation of state law Plan is not feasible Docket No. 3927 D.S. Appendix C (Liquidation Analysis) contains substantial differences in value from the Monthly operating reports

STATUS

The Debtors and the Objecting Party are exchanging proposals to resolve this objection

United States Trustee

Sales Engineering, Inc.

Docket No. 3928 D.S. does not disclose the Oakland County Circuit Court judgment against Debtors D.S. does not disclose the Plans treatment of the litigation claim against Debtors Unclear if releases would relive JPM of obligations under letters of credit D.S. does not disclose the Effective Date Docket No. 3929 D.S. does not provided adequate information concerning treatment of insurance polices issued by ACE

The Debtors believe they have addressed the concerns of the United States Trustee, and the Debtors and the United States Trustee are exchanging proposals to resolve this Objection The Debtors and the Objecting Party are exchanging proposals to resolve this Objection

ACE Group

The Debtors have contacted the Objecting Party to attempt to resolve this objection

OBJECTING PARTY

BASIS FOR OBJECTION

D.S. does not disclose if the Debtors intend to rely upon insurance coverage provided by ACE to satisfy claims Proposed releases may prevent ACE from exercising its rights and duties under the insurance polices Docket No. 3930 D.S. does not indicate whether the Farmington, NH plant will be sold D.S. does not disclose what will happen if properties are not sold D.S. does not disclose clean-up after the Effective Date D.S. does not indicate what assets will be placed in the post consummation trust The post consummation trust agreement and budget are not available Docket No. 3932 D.S. does not provide Plan Exhibits D.S. does not provide adequate information concerning treatment of insurance contracts D.S. does not provide adequate information concerning treatment of insurers claims Docket No. 3933 D.S. does not provide meaningful information on procedure for liquidation and payment of claims D.S. does not disclose whether FFIC agreements will be assumed or rejected D.S. does not disclose the risks that insurance coverage may not be available for insured claims due to the plans violation of FFICs rights D.S. describes and unconfirmable plan as to FFICs rights

STATUS

Town of Farmington, NH

The Debtors and the Objecting Party are exchanging proposals to resolve this Objection

Century Indemnity Company, Continental Insurance Company, Continental Casualty Company, St. Paul Surplus Lines Insurance Company, and The Travelers Indemnity Company

The Debtors and the Objecting Party are exchanging proposals to resolve this Objection

Firemans Fund Insurance Company, National Surety Company (FFIC)

The Debtors have contacted the Objecting Party to attempt to resolve the Objection

OBJECTING PARTY
McKay Shields LLC

BASIS FOR OBJECTION

Docket No. 3934 D.S. does not contain sufficient information because of broad and ambiguous provisions contained in Plan Plan discriminates among members of the same class D.S. and Plan contain improper releases Docket No. 3935 D.S. does not disclose adequate information re H.P. Pelzers setoff rights Trust agreements are not available Docket No. 3938 Plan contains no terms with regard to curing of any default by Debtors Plan does not provide interest to the IRSs claim Plan disallows penalty portion of IRS tax claim Releases may preclude assessment of potential tax claims against certain parties Docket No. 3940 D.S. does not disclose treatment of tool and mold suppliers and their potential lien claims Lien claim must be satisfied before releases are granted Docket No. 3941 D.S. does not disclose treatment of tool and mold suppliers and their potential lien claims Lien claim must be satisfied before releases are granted Docket No. 3942 D.S. does not disclose treatment of tool and

STATUS
The Debtors have contacted the Objecting Party to attempt to resolve the Objection

H.P. Pelzer Automotive System, Inc. IRS Hallmark Technologies Tri-Way Mold & Engineering Phillips Tool & Mould

The Debtors have contacted the Objecting Party to attempt to resolve the Objection

Resolved: Counsel for the IRS has confirmed that its objection does not relate to the adequacy of the Disclosure Statement and that the IRS is not objecting to the approval thereof

The Debtors and the Objecting Party will be exchanging proposals to resolve this Objection

The Debtors and the Objecting Party will be exchanging proposals to resolve this Objection

The Debtors and the Objecting Party will be exchanging proposals to resolve

OBJECTING PARTY

BASIS FOR OBJECTION

mold suppliers and their potential lien claims Lien claim must be satisfied before releases are granted Docket No. 3943 D.S. contains insufficient information to determine Effective Date

STATUS
this Objection

PIC Group, Inc.

The Debtors have contacted the Objecting Party to attempt to resolve this Objection

CERTIFICATE OF SERVICE I, Ray C. Schrock, an attorney, certify that on the 22nd day of January, 2007, I caused to be served, by e-mail, facsimile and by overnight delivery, in the manner and to the parties set forth on the attached service lists, a true and correct copy of the foregoing Omnibus Objection Status Report in Support of Motion for Entry of an Order Approving the Debtors Disclosure Statement and Relief Related Thereto. Dated: January 22, 2007 /s/ Ray C. Schrock Ray C. Schrock

NOTICE REGARDING THE SERVICE LIST

Rule 9014-1(b)(3) of the Local Rules for the United States Bankruptcy Court for the Eastern District of Michigan (the Local Rules) requires parties to accompany filed motions with a proof of service of such motion and the notice and opportunity to respond to such motions. Consistent with Local Rule 9014-1(b)(3), the documents attached hereto were filed with a proof of service that includes the list of parties who were served with such documents (and the manner by which they were served). Due to the lengthy nature of such lists, they are not served herewith. Documents filed with the Court, including proofs of service with the list of parties who were served with such documents (and the manner by which they were served) can be viewed and downloaded at the web site of the United States Bankruptcy Court for the Eastern District of Michigan (http://www.mieb.uscourts.gov) and the web site of the Debtors Notice and Claims Agent `(http://www.kccllc.net/cna (Court Documents)). You may obtain further information concerning these chapter 11 cases, including a copy of the First Amended Notice, Case Management and Administrative Procedures, at the web site of the United States Bankruptcy Court for the Eastern District of Michigan (http://www.mieb.uscourts.gov) and the web site of the Debtors Notice and Claims Agent (http://www.kccllc.net/cna). The current Core Group and 2002 List (as defined in the First Amended Notice, Case Management and Administrative Procedures) are available at the web site of the Debtors Notice and Claims Agent (http://www.kccllc.net/cna (Notice Lists)). If you have any questions about the Core Group or 2002 List, please call (312) 649-3862 or e-mail agorman@kirkland.com.

K&E 10785270.4