UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION, et al,

Debtors.
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Chapter 11 Case No. 05-55927-R (Jointly Administered) Tax Identification No. 13-3489233 Honorable Steven W. Rhodes

OBJECTION BY ANCHOR COURT, LLC TO DEBTORS MOTION FOR THE ENTRY OF ORDERS APPROVING BIDDING PROCEDURES, SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF DEBTORS CARPET & ACOUSTICS BUSINESS FREE AND CLEAR OF LIENS, CLAIMS, ENCUMBRANCES AND INTERESTS AND RELATED RELIEF Anchor Court, LLC (Anchor) objects to the Debtors Motion for the Entry of Orders Approving Bidding Procedures, Sale of Substantially All of the Assets of Debtors Carpet & Acoustics Business Free and Clear of Liens, Claims, Encumbrances and Interests and Related Relief (Sale Motion). In support of its objection Anchor states as follows: Introduction 1. Anchor files this objection because:

1 The Debtors in the proposed jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc.; Becker Group, LLC (d/b/a Collins & Aikman Premier Mold); Brut Plastics, Inc.; Collins & Aikman (Gibraltar) Limited; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation); Collins & Aikman Asset Services, Inc.; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.); Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.); Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.); Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.); Collins & Aikman Automotive International, Inc.; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.); Collins & Aikman Automotive Mats, LLC; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.); Collins & Aikman Automotive Services, LLC; Collins & Aikman Canada Domestic Holding Company; Collins & Aikman Carpet & Acoustics (MI), Inc.; Collins & Aikman Carpet & Acoustics (TN), Inc.; Collins & Aikman Development Company; Collins & Aikman Europe, Inc.; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.); Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.); Collins & Aikman Interiors, Inc.; Collins & Aikman International Corporation; Collins & Aikman Plastics, Inc.; Collins & Aikman Products Co.; Collins & Aikman Properties, Inc.; Comet Acoustics, Inc.; CW Management Corporation; Dura Convertible Systems, Inc.; Gamble Development Company; JPS Automotive, Inc. (d/b/a PACJ, Inc.); New Baltimore Holdings, LLC; Owosso

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(a)

Debtors have not stated unequivocally whether they intend to assume and assign the lease between Anchor and Debtors;

(b)

The Sale Motion does not state the deadline (if any) by which Debtors must assume and assign the lease with Anchor;

(c)

Neither the Proposed Purchaser under the Sale Motion nor any potential bidder has given Anchor adequate assurance that it would be able to perform its duties under the lease between Anchor and Debtors if it were assumed and assigned; and

(d)

Anchor has not yet determined whether the proposed cure amount listed by Debtors for the lease is correct. Background

2.

On May 17, 2005, Debtors filed their voluntary petitions for relief under chapter

11 of the Bankruptcy Code. 3. 4. On April 20, 2007, Debtors filed the Sale Motion. In the Sale Motion, Debtors seek authority under Section 365 of the Bankruptcy

Code to assume and assign certain unexpired leases to International Automotive Components Group North America, Inc. (Proposed Purchaser) or any other successful bidder. 5. In connection with the Sale Motion, counsel for Anchor contacted counsel for

Debtors in order to obtain a list of all the contracts that were to be assumed and assigned in

Thermal Forming, LLC; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.); Wickes Asset Management, Inc.; and Wickes Manufacturing Company.

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connection with the Sale Motion in order to verify the existence of any contracts or leases between Anchor and Debtors that Debtors intended to assume and assign. 6. On May 7, 2007, Debtors provided Anchor with the Notice of Public Auction,

Sale Hearing and Procedures for Assumption and Assignment of Certain Executory Contracts (Notice). The Notice included a Contract and Cure Schedule (Schedule) which listed

executory contracts that may potentially be assumed or assigned to the Proposed Purchaser or other Successful Bidder. Included in the Schedule is a lease dated June 29, 2001 between Anchor and Debtor Collins & Aikman Products Co. for the property at 47785 West Anchor Court, Plymouth, Michigan (Lease). Argument 7. The Notice does not state affirmatively whether Debtor Collins & Aikman

Products Co. (Debtor) will assume and assign the Lease. Moreover, Debtor has not provided a deadline by which it must assume and assign the Lease and pay all cure costs. This Court should not allow the Proposed Purchaser or any other prospective purchaser under the Sale Motion to perform under the Lease without Anchors consent before the Lease is assumed and assigned and all cure costs paid to Anchor. 8. Under Section 365(f)(2)(B) of the Bankruptcy Code, Debtors may assign an

unexpired lease only if adequate assurance of future performance by the assignee of such contract is provided. Neither the Proposed Purchaser nor any other potential bidder provided Anchor with adequate assurance of future performance of the Lease. 9. Anchor has not yet determined whether it is entitled to any cure costs with regard

to the Lease. Anchor also intends to arrange for an inspection of the leased premises to ascertain -3Detroit_770599_2

its condition. Section 365(b)(1) of the Bankruptcy Code provides that if there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of the assumption the trustee (A) cures such default. Anchor reserves the right to object to the proposed cure amount of $0 that is listed on the Notice. RELIEF REQUESTED Anchor requests entry of an Order denying the Sale Motion and granting other relief as this Court determines. BODMAN LLP

By:

/s/ Robert J. Diehl, Jr. Robert J. Diehl, Jr. (P31264) Ralph E. McDowell (P39235) 6th Floor at Ford Field 1901 St. Antoine Street Detroit, Michigan 48226 Telephone: (313) 259-7777 Facsimile: (313) 393-7579 rdiehl@bodmanllp.com Attorneys for Anchor Court, LLC

May 18, 2007

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