UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------In re: x ) ) COLLINS & AIKMAN CORPORATION,

et al.1 ) ) Debtors. ) ) ----------------------------------------------------------- x Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven W. Rhodes

DEBTORS MOTION TO APPROVE SETTLEMENT AND COMPROMISE OF CLAIMS WITH RESPECT TO ANCHOR TOOL & DIE CO. D/B/A ANCHOR MANUFACTURING GROUP, INC. IN ADVERSARY PROCEEDING NO. 07-05683 The above-captioned debtors (collectively, the Debtors or C&A) for Debtors Motion to Approve Settlement and Compromise of Claims with Respect to Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. in Adversary Proceeding No. 07-05683 (the Motion) respectfully state as follows: INTRODUCTION

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. 0555956; 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. 0555970; 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.

0W[;(%)
0555927080509000000000001

1.

Through this Motion, the Debtors request authority to settle and

compromise certain claims the Debtors have against Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. (Anchor). If this Motion is granted, the Debtors will pay Two Hundred Thirty-six Thousand and 00/100 Dollars ($236,000.00) to Anchor. Additionally, Anchors alleged secured claim against the Debtors estates in the amount of $543,801.87 shall be disallowed with prejudice and deemed to be a general unsecured non-priority claim in the reduced amount of $307,801.87. JURISDICTION 2. The 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). 3. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. BACKGROUND 4. On May 17, 2005 (the Petition Date), the Debtors filed voluntary

petitions for relief (collectively, the Chapter 11 Cases) under chapter 11 of the Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code). 5. The Debtors were leading global suppliers of automotive components,

systems and modules to all of the worlds largest vehicle manufacturers, including DaimlerChrysler AG, Ford Motor Company, General Motors Corporation, Honda Motor Company, Inc., Nissan Motor Company Unlimited, Porsche Cars GB, Renault Createur DAutomobiles, Toyota SA and Volkswagen AG. 6. Prior to and subsequent to the Petition Date, certain of the Debtors issued

purchase orders to Anchor which Anchor accepted for the production of component parts (the Parts). Anchor utilized certain tooling (the Tooling) to produce the Parts.

7.

On January 10, 2006, Anchor filed various proofs of claim, including but

not necessarily limited to, Proof of Claim No. 4046 against Collins & Aikman Corporation; Proof of Claim No. 4632 against JPS Automotive, Inc. (d/b/a PACJ, Inc.); and Proof of Claim No. 4631 against C&A Products, Co. (collectively, the Proofs of Claim). The Proofs of Claim, which appear to be duplicative, each assert a secured claim in the amount of $543,801.87 (the Anchor Secured Claim) and allege a lien on the Tooling and the Parts specifically identified in the Proofs of Claim (hereinafter, the Subject Tooling and the Subject Parts). 8. The Debtors dispute that Anchor has a valid perfected and first priority

lien on the Subject Tooling and/or the Subject Parts and dispute that Anchor is entitled to a secured claim against the Debtors estates with respect thereto. The Debtors

commenced Adversary Proceeding No. 07-05683 (the Adversary Proceeding) against Anchor pursuant to which, among other things, the Debtors objected to the Anchor Secured Claim and sought to avoid Anchors alleged lien on the Subject Tooling and the Subject Parts (the Lien Avoidance Action). In addition, Anchor filed a counterclaim against the Debtors seeking to enforce its alleged lien rights in the Subject Tooling and the Subject Parts (the Counterclaim). 9. The Debtors successor, the C&A Post-Consummation Trust (the Trust)

has also objected to the Proofs of Claim via the Trusts Twenty-Fifth Omnibus Objection to Claims (Multidebtor Duplicate Claims) and the Trusts Twenty-Ninth Omnibus Objection to Claims (Books and Records) (collectively, the Claim Objection). 10. In addition to the Adversary Proceeding, the Debtors commenced and are

maintaining a separate and distinct adversary proceeding being a preference action against Anchor, entitled Collins & Aikman Corporation, et al. v. Anchor Tool & Die Co. et al, Adversary Proceeding No. 07-05506 (the Preference Action). 3

The Settlement 11. The parties have engaged in negotiations to resolve the Anchor Secured

Claim, the Lien Avoidance Action, the Claim Objection, the Counterclaim and the Adversary Proceeding. 12. Based upon all of the foregoing, including the investigation by the Debtors

into the facts and circumstances surrounding the Anchor Secured Claim, the Lien Avoidance Action, the Claim Objection, and the Counterclaim, the Debtors, in the sound exercise of their business judgment, believe that it would be in the best interests of their estates and their creditors to resolve the Anchor Secured Claim, the Lien Avoidance Action, the Claim Objection, the Counterclaim and the Adversary Proceeding in exchange for the relief outlined in the Settlement Agreement (the Settlement Agreement). The Terms 13. If the Court approves the Settlement Agreement, a copy of which is

attached hereto as Exhibit 6: a. Within ten (10) business days of the Order Granting Debtors Motion to Approve Settlement and Compromise of Claims With Respect to Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. in Adversary Proceeding No. 07-05683, a copy of which is attached hereto as Exhibit 1 (the Order), becoming a final and non-appealable order, the Debtors shall pay Anchor Two Hundred Thirty-six Thousand and 00/100 Dollars ($236,000.00). b. Proof of Claim No. 4046 shall be allowed as a general unsecured non-priority claim in the amount of $307,801.87 (the Amended 4

Anchor Claim) for all purposes, including any distribution(s) which might hereafter be made to holders of allowed general unsecured claims in the bankruptcy case and no amounts of the Amended Anchor Claim shall be classified or treated as a secured claim or priority unsecured claim. Other than the Amended

Anchor Claim, all of Anchors Proofs of Claim will be disallowed and expunged in their entirety. c. All liens asserted by Anchor against the Subject Tooling and the Subject Parts will be fully and forever waived, released and discharged. d. The Debtors shall release Anchor as provided in the Settlement Agreement, provided, however, such release is without prejudice to any claims which might otherwise exist against Anchor in the pending Preference Action which claims are fully preserved notwithstanding this Settlement Agreement and provided, further, such release is without prejudice to the Debtors and the Trusts rights and defenses to any claim Anchor may assert in the Bankruptcy Court resulting from any amount(s) hereafter paid by Anchor on account of any settlement(s) entered into by Anchor, or any judgment(s) entered against Anchor with respect to the Preference Action. e. Anchor shall release the Debtors as provided in the Settlement Agreement, provided however, such release is without prejudice

solely as to Anchors rights and defenses and affirmative defenses in the Preference Action to the extent any such right(s) otherwise exist, including, such right, if any, as Anchor may retain to file such claim(s) in the Bankruptcy Court as may result from any amount(s) hereafter paid by Anchor on account of any settlement(s) entered into by Anchor, or any judgment(s) entered against Anchor with respect to the Preference Action, provided, further such release is without prejudice with respect to the Amended Anchor Claim which claim is fully preserved notwithstanding this Settlement Agreement. f. The Debtors and Anchor shall dismiss the Adversary Proceeding with prejudice. 14. Based upon all of the foregoing, including the investigation by Debtors

into the facts and circumstances surrounding the dispute, the Debtors, in the sound exercise of their business judgment, believe that it would be in the best interests of the Debtors estates and their creditors to resolve these disputes upon the terms and conditions set forth herein. The Debtors believe that significant sums would have been spent pursuing litigation with the attendant risk that the Debtors would not ultimately prevail. 15. The proposed settlement provides extremely valuable economic benefits to

the Debtors and their stakeholders, while at the same time avoiding significant attendant risks.

16.

Under Fed. R. Bankr. P. 9019, on motion and after notice and a hearing,

the Court may approve a compromise or settlement after notice is provided to all parties required to be served, as provided in Fed. R. Bankr. P. 2002. 17. Settlements are generally favored by the law. In re Dow Corning Corp.,

198 B.R. 214, 221 (Bankr. E.D. Mich. 1996). The benchmark for determining the propriety of a bankruptcy settlement is whether the settlement is in the best interests of the estate. In re Lee Way Holding Corp., 120 B.R. 881, 890 (Bankr. S.D. Ohio 1990). In considering whether to approve a settlement as in the best interest of the debtors bankruptcy estate, a bankruptcy court should consider, among other things: (i) the probability of the partys success in the litigation; (ii) the complexity of the litigation; and (iii) the litigations expense, inconvenience and delay. Protective Committee for

Independent Stockholders of TMT Trailer Ferry, Inc. v. Anderson, 390 U.S. 414 (1968); Matter of Energy Cooperative, Inc., 866 F.2d 1921 (7th Cir. 1989); In re Lee Way Holding Corp., supra. 18. A bankruptcy court should approve a proposed settlement if it is fair and

equitable and unless it "falls below the lowest point in the range of reasonableness." In re Dow Corning, 198 B.R. 214, 222 (Bankr. E.D. Mich. 1996); see also, In re New Concept Housing, Inc., 951 F.2d 932, 938 (8th Cir. 1991). 19. Giving appropriate consideration to the above factors, the risk to the

Debtors, the available defenses of Anchor, the complexity of the issues and the other risks inherent in litigation, and weighing those fees and expenses which the Debtors would necessarily incur in further pursuing these claims through trial, and the delay and

inconvenience which would be involved therewith even if the Debtors were to prevail, the Debtors believe that the Settlement is in the best interest of the Debtors Estate. Notice 20. Notice of this Motion has been given to the Core Group and Affected In light of the nature of the

Parties as required by the Case Management Procedures.

relief requested, the Debtors submit that no further notice is required. No Prior Request 21. No prior motion for the relief requested herein has been made to this or

any other court. WHEREFORE, the Debtors respectfully request that this Court approve the Settlement Agreement and enter the proposed Order attached hereto as Exhibit 1 and grant to the Debtors such other and further relief as is just and appropriate in the circumstances. CARSON FISCHER, P.L.C.

/s/ Patrick J. Kukla David E. Schlackman (P58894) Patrick J. Kukla (P60465) 4111 Andover Road West Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (284) 644-1832 Co-Counsel for the Debtors Dated: May 9, 2008.

EXHIBIT 1

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION x ) ) COLLINS & AIKMAN CORPORATION, et al.1 ) ) Debtors. ) ) ----------------------------------------------------------- x ----------------------------------------------------------In re: Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven W. Rhodes

ORDER GRANTING DEBTORS MOTION TO APPROVE SETTLEMENT AND COMPROMISE OF CLAIMS WITH RESPECT TO ANCHOR TOOL & DIE CO. D/BA/ ANCHOR MANUFACTURING GROUP, INC. IN ADVERSARY PROCEEDING NO. 07-05687 Upon the Motion of the above-captioned debtors (collectively, the Debtors) for entry of an order approving the Debtors proposed settlement with Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. (Anchor); it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. 157; it appearing that venue of this proceeding and
2

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. 0555957; 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. 0555951; 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.

2 Unless otherwise defined herein, capitalized terms shall have the meaning ascribed to them in the Debtors Motion to Approve Settlement and Compromise of Claims With Respect to RCO Engineering, Inc. in Adversary Proceeding No. 07-05687.

this Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409 and the relief requested is in the best interest of 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 the venue of this proceeding and the Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409; notice of this Motion and the opportunity for a hearing on this Motion was appropriate under the particular circumstances and that no other or further notice need be given; no objections having been timely filed or served; and after due deliberation and sufficient cause appearing therefor and the Court being otherwise duly advised in the premises, it is hereby ORDERED that: 1. 2. The Motion is GRANTED in its entirety. The Settlement Agreement is approved and the Debtors or another

appropriate Estate representative is authorized to execute any and all documents necessary to consummate the Settlement Agreement. The Settlement Agreement is binding on the Debtors, their estates, the C&A Post-Consummation Trust, Anchor and its affiliates. 3. The Court retains jurisdiction with respect to all matters arising from or

related to the parties respective rights and obligations under the Settlement Agreement and the implementation of this Order.

EXHIBIT 2

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------In re: COLLINS & AIKMAN CORPORATION, et al.1 Debtors. ----------------------------------------------------------x ) ) ) ) ) ) x Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven W. Rhodes

NOTICE AND OPPORTUNITY TO RESPOND TO: DEBTORS MOTION TO APPROVE SETTLEMENT AND COMPROMISE OF CLAIMS WITH RESPECT TO ANCHOR TOOL & DIE CO. D/B/A ANCHOR MANUFACTURING GROUP, INC. IN ADVERSARY PROCEEDING NO. 07-05683 PLEASE TAKE NOTICE THAT the Debtors have filed Debtors Motion to Approve Settlement and Compromise of Claims With Respect To Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. In Adversary Proceeding No. 07-05683 (the Motion), seeking an order of the Court approving a proposed settlement with Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. (Anchor). Your rights may be affected. You should read this Motion (and exhibits) carefully and discuss it with your attorney, if you have one in this bankruptcy case. (If you do not have an attorney, you may wish to consult one.)
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. 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.

If you do not want the Court to approve the proposed settlement, or if you want the Court to otherwise consider your views on the Motion, within twenty (20) days of service of this Notice, OR SUCH SHORTER TIME AS THE COURT MAY HEREAFTER ORDER AND OF WHICH YOU MAY RECEIVE SUBSEQUENT NOTICE, you or your attorney must: 1. File with the Court a written response, explaining your position at:2 United States Bankruptcy Court 211 West Fort Street, Suite 2100 Detroit, Michigan 48226 If you mail your response to the Court for filing, you must mail it early enough so the court will receive it on or before the date above. All attorneys are required to file pleadings electronically. You must also mail a copy to: Carson Fischer, P.L.C. Attn: Patrick J. Kukla, Esq. 4111 Andover Road, West 2nd Floor Bloomfield Hills, Michigan 48302 2. If a response or answer is timely filed and served, the Clerk will schedule a hearing on the Motion and you will be served with a notice of the date, time and location of the hearing.

If you or your attorney do not take these steps, the Court may decide that you do not oppose the relief sought in the Motion and may enter an order granting that relief. CARSON FISCHER, P.L.C. /s/ Patrick J. Kukla Joseph M. Fischer (P13452) Lawrence A. Lichtman (P35403) Patrick J. Kukla (P60465) 4111 Andover Road, West Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (284) 644-1832 Co-Counsel for the Debtors Dated: May 9, 2008
2

Response or answer must comply with F.R. Civ. P. 8(b), (c) and (e)

EXHIBIT 3
[INTENTIONALLY LEFT BLANK]

EXHIBIT 5
[INTENTIONALLY LEFT BLANK]

EXHIBIT 6

SETTLEMENT AGREEMENT AND MUTUAL RELEASE This Settlement Agreement and Mutual Release (the Settlement Agreement) is made by and between ANCHOR TOOL & DIE CO. d.b.a. ANCHOR MANUFACTURING GROUP, INC. (collectively, Anchor), COLLINS & AIKMAN CORPORATION, on behalf of itself and its affiliated debtors in possession1 (individually and collectively, the Debtors) and the C&A POST-CONSUMMATION TRUST (the Trust), as successor in interest to the Debtors. WHEREAS, on May 17, 2005 (the Petition Date) the Debtors filed petitions for relief under Chapter 11 of the United States Bankruptcy Code and thus initiated numerous related Chapter 11 cases, which are being jointly administered and referenced as In re Collins & Aikman Corporation et al., being Case No. 05-55927 (individually and collectively, the Case), currently pending before the United States Bankruptcy Court for the Eastern District of Michigan, Southern Division (the Bankruptcy Court). WHEREAS, prior to and subsequent to the Petition Date, certain of the Debtors issued purchase orders to Anchor, which Anchor accepted, for the fabrication of component parts (the Parts). Anchor utilized certain tooling (the Tooling) to produce the Parts. WHEREAS, Anchor filed in the Case various proofs of claim, including, but not necessarily limited to, Proof of Claim No. 4046 against Collins & Aikman Corporation; Proof of Claim No. 4632 against JPS Automotive, Inc. (d/b/a PACJ, Inc.); and Proof of Claim No. 4631 against C&A Products Co. (collectively, the Proofs of Claim). The Proofs of Claim filed by Anchor in the Case, which appear to the Debtors to be duplicative, each assert a secured claim in the aggregate amount of $543,801.87 (the Anchor Secured Claim), and allege a lien on the Tooling and the Parts that are specifically identified in the Proofs of Claim (hereinafter, the Subject Tooling and the Subject Parts).
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. 0555946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 0555962; and Wickes Manufacturing Company, Case No. 05-55968.
1

-2-

WHEREAS, the Debtors and Anchor are the parties to an Adversary Proceeding filed in the Case, captioned In re Collins & Aikman Corporation, et al. v Anchor Manufacturing Group, Inc. and Anchor Tool & Die, Bankruptcy Case No. 05-55927, Adversary Proceeding No. 0705683 (hereinafter, the Adversary Proceeding). WHEREAS, in the Adversary Proceeding, the Debtors have asserted various counts alleging that the Anchor Secured Claim was not, in fact, based on any lien or security. In addition, Anchor filed a counterclaim (the Counterclaim) against the Debtors seeking to enforce its alleged lien rights in the Subject Tooling and the Subject Parts. WHEREAS, Anchor, denies the Debtors allegations in the Adversary Proceeding in their entirety and Debtors deny Anchors allegations in the Adversary Proceeding in their entirety. WHEREAS, the parties wish to resolve their disputes in the Adversary Proceeding through the settlement embodied herein. WHEREAS, the parties agree that the settlement and compromise of the Adversary Proceeding shall not affect in any way the separate adversary proceeding entitled Collins & Aikman Corporation, et al. v Anchor Tool & Die Co. et al., Adversary Proceeding Case No. 0705506 (the Preference Action). NOW, THEREFORE, for good and valid consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 1. Recitals Incorporated. The recitals and prefatory phrases and paragraphs set forth above are hereby incorporated in full, and made a part of this Settlement Agreement. 2. Payment. Within ten (10) business days of the Order Granting the Debtors Motion to Approve Settlement and Compromise of Claims with Respect to Anchor Tool & Die Co. d/b/a Anchor Manufacturing Group, Inc. in Adversary Proceeding No. 07-05683 (the Order) becoming a final and non-appealable order, the Debtors shall pay, in good funds, via check to Anchor or wire transfer to Anchors bank account the lump sum of Two Hundred Thirty-six Thousand and 00/100 Dollars ($236,000.00) (the Settlement Payment). 3. Proof of Claim. As additional consideration for this Settlement Agreement, the parties agree, that Proof of Claim No. 4046 shall be allowed as a general unsecured non-priority claim in the amount of $307,801.87 (the Amended Anchor Claim), which Amended Anchor Claim represents the Anchor Secured Claim less the Settlement Payment, for all purposes, including any distribution(s) which might be hereafter made to holders of allowed general unsecured claims in the Case, and no amounts of the Amended Anchor Claim shall be classified or treated as a secured claim or priority unsecured claim. Other than the Amended Anchor Claim, all of Anchors Proofs of Claim are hereby disallowed and expunged in their entirety. This amendment is for purposes of this settlement and for distribution consideration only and

-3-

shall not be (i) construed as an admission or acknowledgement by the Debtors that any portion of the Anchor Secured Claim is valid; (ii) considered an admission by Anchor that any portion of the Anchor Secured Claim is invalid; or (iii) deemed an admission, acknowledgement or waiver in any way or otherwise prejudice Anchors defenses or rights in relation to the Preference Action. 4. Mutual Release. Upon entry of the Order, the Debtors and the Trust, for themselves and on behalf of their respective agents, attorneys, employees, officers, directors, other representatives, affiliates, successors, and assigns, including but not limited to, any successor trustee(s) in the Case hereafter appointed, in consideration of the settlement and release set forth herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, do hereby fully and forever release, acquit and discharge Anchor and each of its respective agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns, from any and all actions, causes of action, claims, damages, liabilities, costs and expenses, of any kind or nature, whether known or unknown, accrued or unaccrued, liquidated or unliquidated, fixed or contingent, direct or indirect, which now exist or which might otherwise hereafter arise from any events, transactions or occurrences which happened at any time, since the beginning of time up and until and including the date of this Settlement Agreement, with respect to the Subject Tooling, the Subject Parts, the Proofs of Claim, the Anchor Secured Claim, the Counterclaim or the Adversary Proceeding and shall withdraw any objection to Anchors Proofs of Claim which were filed before the date of this Settlement Agreement, provided however, such release is without prejudice to any and all claims against Anchor in the pending Preference Action (individually and collectively, the Preference Claims) which Preference Claims are fully preserved in their entirety notwithstanding this Settlement Agreement; provided further, that such release is without prejudice to the Debtors and the Trusts rights and defenses to any claim Anchor may assert in the Bankruptcy Court resulting from any amount(s) hereafter paid by Anchor on account of any settlement(s) entered into by Anchor, or any judgment(s) entered against Anchor with respect to the Preference Action and provided further, that nothing herein shall be deemed to release Anchor from any of its obligations under this Settlement Agreement. Upon entry of the Order and Anchors receipt of the Settlement Payment, Anchor for itself and on behalf of its agents, attorneys, employees, officers, directors, other representatives, affiliates, successors, and assigns, in consideration of the Settlement Payment and the release in favor of the Trust and the Debtors, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, does hereby fully and forever release, acquit and discharge the Trust and the Debtors and each of the Debtors and the Trusts respective agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns, including but not limited to, any successor trustee(s) in the Case hereafter appointed, from any and all actions, causes of action, claims, damages, liabilities, costs and expenses, of any kind or nature, whether known or unknown, accrued or unaccrued, liquidated or unliquidated, fixed or contingent, direct or indirect, which now exist or which might otherwise hereafter arise from any events, transactions or occurrences which happened at any time, since the beginning of time up and until and including the date of this Settlement Agreement, with respect to the Subject

-4-

Tooling, the Subject Parts, the Proofs of Claim, the Anchor Secured Claim, the Counterclaim or the Adversary Proceeding, provided however, that such release is without prejudice as to Anchors rights and defenses and affirmative defenses in the Preference Action, to the extent any such right(s) otherwise exist(s), including, such right, if any, as Anchor may retain to file such claim(s) in the Bankruptcy Court as may result from any amount(s) hereafter paid by Anchor on account of any settlement(s) entered into by Anchor, or any judgment(s) entered against Anchor, with respect to the Preference Action, provided further that the release is without prejudice with respect to the Amended Anchor Claim, which claims are fully preserved notwithstanding this Settlement Agreement; and provided further, that nothing herein shall be deemed to release the Trust or the Debtors from any of its obligations under this Settlement Agreement. 5. No Further Enforcement Action. Upon entry of the Order, Anchor shall not, other than with respect to the Amended Anchor Claim, which the parties agree and by its terms may only be brought against the Debtors estates, pursue or make or further pursue or make any claim with respect to the amounts claimed in the Proofs of Claim. Anchor shall not pursue or further pursue any lien, attachment, or possessory type relief against any party with respect to the Subject Tooling and/or the Subject Parts. Upon request, Anchor shall forthwith execute and deliver lien releases, if necessary, on the Subject Tooling and/or the Subject Parts. 6. Dismissal of the Litigation. This Agreement is conditioned upon entry of an Order by the Bankruptcy Court in the Case approving this Settlement Agreement. Upon entry of the Order and payment of the Settlement Payment, the parties authorize their respective attorneys to file a Stipulation of Dismissal With Prejudice and Without Costs in the Adversary Proceeding with respect to the complaint and the counterclaim. 7. No Other Representations. This Settlement Agreement is being entered into voluntarily for the purpose of settling the parties claims against each other and is not based on any representation or statements other than those in this Settlement Agreement of any kind made by any party or their representatives as to legal merits, legal liability, or the value of the parties claims. Each party enters into the Settlement Agreement with all requisite authority, freely and voluntarily, with full knowledge of its significance and the Settlement Agreement is in all respects complete and final. The parties acknowledge that they have sought counsel with respect to this matter and understand the consequences in entering into this Agreement. 8. Entire Agreement. The parties agree that the Settlement Agreement contains the entire agreement and understanding of the parties, that that there are no additional promises or terms of the Settlement Agreement amongst the parties other than those written in this Settlement Agreement. 9. Binding Effect. This Settlement Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 10. Severability. In the event any term of this Settlement Agreement is unenforceable, then such unenforceable term, if possible, will be altered so as to remain

-5-

enforceable, or if that is not possible, then it will be deleted from this Settlement Agreement, and the remaining part of the Settlement Agreement shall remain in effect. 11. Modification. No modification of this Settlement Agreement will be enforceable unless it is in writing, signed by all the parties. 12. Assignment. The parties represent and warrant that they have not assigned any part of the claims subject to this Settlement Agreement, and that no party that is not bound by this Settlement Agreement owns any interest in such claims. 13. Headings. The headings to the various clauses of this Settlement Agreement have been inserted for the convenience of the parties only. They shall not be used to interpret or construe the meaning of the terms and provisions hereof. 14. Counterparts. This Settlement Agreement may be signed in counterparts, each counterpart to be considered an original portion of this Settlement Agreement, and, upon the event of each party signing the Settlement Agreement, it shall be final and binding upon the parties. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto except having additional signature page(s) executed by one or more of the other parties. Each of the parties agree that each of the other parties may rely upon the facsimile signature of any party on this Settlement Agreement as constituting a duly authorized, irrevocable, actual, current delivery of this Settlement Agreement as fully as if this Settlement Agreement contained the original ink signature of the party or parties supplying a facsimile signature. 15. Preparation of Settlement Agreement and Construction. This Settlement Agreement has been prepared jointly by respective counsel for each of the parties, with a full opportunity for the parties to negotiate its terms. Accordingly, any rule of law or legal decision that would require interpretation of any ambiguities in this Settlement Agreement against the party that has drafted it is not applicable and is hereby waived. 16. Compromise Agreement. This Settlement Agreement is a compromise and settlement of claims and is not intended to be, nor shall it be construed as, an admission of liability or wrongdoing by any party hereto or any other person or entity. 17. Approval and Jurisdiction. This Settlement Agreement is subject to and conditioned upon the approval of the compromise reflected herein by the U.S. Bankruptcy Court under the procedure set forth under the Federal Rules of Bankruptcy Procedure. This Settlement Agreement shall be construed and governed by the laws of the State of Michigan, and the Bankruptcy Court shall have jurisdiction over this Settlement Agreement and the parties hereto, provided, however, that no determination has been made, and no admission is being made, with respect to whether the laws of the State of Ohio, Michigan or some other jurisdiction govern the claims asserted by Anchor.

-6-

18. Authority. Each party hereto warrants and represents to the other that the execution and performance of this Settlement Agreement by it has been duly authorized such that the signatory hereto possesses all requisite power and authority to bind the entity on whose behalf they execute this Settlement Agreement. ANCHOR TOOL & DIE CO. d/b/a ANCHOR MANUFACTURING GROUP, INC. _____________________________________ By:__________________________________ Its:__________________________________ Dated: ________________________, 2008 . COLLINS & AIKMAN CORPORATION, on behalf of itself and its affiliated Debtors-in-Possession __________________________________ By:_______________________________ Its:________________________________ Dated:_________________________, 2008 C&A POST CONSUMMATION TRUST __________________________________ By:_______________________________ Its:________________________________ Dated:_________________________, 2008

-7-