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 APPROVING STIPULATION BETWEEN THE COLLINS & AIKMAN POST-CONSUMMATION TRUST, COLLINS & AIKMAN LITIGATION TRUST AND THE STATE OF MICHIGAN DEPARTMENT OF TREASURY Upon the June 3, 2008 Stipulation Between the Collins & Aikman Post-Consummation Trust (the Post-Consummation Trust), Collins & Aikman Litigation Trust (the Litigation Trust), as successors to the above-captioned Debtors (collectively, the Debtors) pursuant to the First Amended Joint Plan of Reorganization of Collins & Aikman Corporation (the Plan) as confirmed by the Order Confirming the First Amended Joint Plan of Collins & Aikman Corporation and Its Debtor Subsidiaries (the Confirmation Order), and the State of Michigan,
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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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Department of the Treasury, for itself and its departments, agencies, agents, employees, officers, directors, attorneys, other representatives and assigns (collectively, the State of Michigan); it appearing that venue and jurisdiction are otherwise appropriate with this Court; the Court being fully advised in the premises: IT IS ORDERED that: 1. Claim No. 1497 shall be deemed an Allowed Secured Claim (as defined in the

Plan) in the amount of $48,009.20 (the State of Michigan Allowed Secured Claim). 2. The following claims will be deemed Allowed Administrative Claims (as defined

in the Plan) in the following amounts (the State of Michigan Allowed Administrative Claims): CLAIM NO. 8790 8788 8846 3. AMOUNT ALLOWED $15,952.59 $3,499.43 $540.58

The following claims will be deemed Allowed Priority Tax Claims (as defined in

the Plan) in the following amounts (the State of Michigan Allowed Priority Tax Claims): CLAIM NO. 8539 8791 8786 8793 8456 8443 4. AMOUNT ALLOWED $757,331.60 $31,718.60 $30,622.96 $28,043.19 $2,866.94 $998.64

The following claims will be deemed Allowed General Unsecured Claims (as

defined in the Plan) in the amounts below (the State of Michigan Allowed Unsecured Claims): CLAIM NO. 8789 8797 8538 8445 1567 CLAIMED AMOUNT $28,742.17 $12,554.75 $2,650.72 $868.27 $840.00 2

1239 8792 5. purposes: EXPUNGED CLAIMS Claim No. 1671 Claim No. 8628 Claim No. 8796 Claim No. 8787 Claim No. 8847 Claim No. 8443 Claim No. 8456 Claim No. 8793 Claim No. 1675 Claim No. 8457 Claim No. 8391 Claim No. 1670 6.

$757.86 $517.38

The following claims are hereby deemed withdrawn and expunged for all

The Post-Consummation Trust will pay the State of Michigan Allowed Secured

Claim, State of Michigan Allowed Administrative Claims and State of Michigan Allowed Priority Tax Claims in the total aggregate amount of $919,583.73 (the Settlement Payment) on or before June 13, 2008. 7. To the extent any distributions are made on the State of Michigan Allowed

General Unsecured Claims, such distributions will be made pursuant to the Plan as confirmed by the Confirmation Order. 8. This Order resolves all claims which have been, or which otherwise might be

asserted by the State of Michigan, including but not limited to the Michigan Claims (as that term is defined in the Stipulation), in the Case or otherwise, against the Debtors, the PostConsummation Trust, the Litigation Trust and each of their respective current and former agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns,

including, but not limited to, Jennifer Heckman, and Gregory Tinnell and any successor trustee(s) in the Case hereinafter appointed. Notwithstanding the foregoing, nothing contained herein shall act as a release of the Debtors, the Post-Consummation Trust, the Litigation Trust or each of their respective current and former agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns from any liability, to the extent such liability exists, for any tax returns which the Debtors have not filed as of the date of the Stipulation. 9. Upon receipt of the Settlement Payment, the State of Michigan fully and forever

releases, acquits and discharges the Debtors, the Post-Consummation Trust, the Litigation Trust and each of their respective current and former agents, attorneys, employees, officers, directors, other representatives, affiliates successors and assigns, including, but not limited to, Jennifer Heckman and 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 happen at anytime, since the beginning of time up and until and including the date of this Stipulation with respect to any tax liabilities, including but not limited to the Michigan Claims. 10. The State of Michigan covenants and agrees not to assert any further or other

claims against the Debtors, the Post-Consummation Trust, the Litigation Trust and each of their respective current and former agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns, including, but not limited to Jennifer Heckman and Gregory Tinnell and any successor trustee(s) n the Case hereinafter appointed, and any other such claims which might otherwise exist are hereby deemed fully and forever waived, released, acquitted and discharged by the State of Michigan. Notwithstanding the foregoing, nothing

contained herein shall act as a release of the Debtors, the Post-Consummation Trust, the 4

Litigation Trust or each of their respective current and former agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns from any liability, to the extent such liability exists, for any tax returns which the Debtors have not filed as of the date of this Stipulation. The State of Michigan represents and warrants that it has not heretofore assigned to any third party any claims which the State of Michigan has, had, or might otherwise have against the Debtors, the Post-Consummation Trust, the Litigation Trust and each of their respective agents, attorneys, employees, officers, directors, other representatives, affiliates, successors and assigns. 11. The Debtors, the Post-Consummation Trust and Kurtzman Carson Consultants,

LLC are authorized to take all actions necessary to effectuate this Order and the Stipulation. 12. This Court shall retain jurisdiction (and the Post-Consummation Trust, Litigation

Trust and State of Michigan consent to such retention of jurisdiction) to resolve any disputes or controversies arising from or related to the Stipulation or this Order. 13. This Order shall not be modified, altered, amended, or vacated without written

consent of all parties to the Stipulation. Any modification, alteration, amendment, or vacation of the Stipulation or this Order, in whole or in part, shall be the subject to the approval of the Bankruptcy Court.
.

Signed on June 05, 2008 _ __ _/s/ Steven Rhodes _ _ Steven Rhodes Chief Bankruptcy Judge