UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION IN RE: COLLINS & AIKMAN CORP. et al.

Debtors. Tax Id. No. 13-3489233 / Hon. Steven W. Rhodes Chapter 11 Case No. 05-55927 Jointly Administered

BASF CORPORATIONS RESPONSE TO THE COLLINS & AIKMAN LITIGATION TRUSTS SEVENTY-THIRD OMNIBUS OBJECTION TO CLAIMS

BASF Corporation (BASF), a creditor of the Debtors, states:

BACKGROUND 1. On May 17, 2005 (the Petition Date), Collins & Aikman Corporation and various

affiliated entities (the Debtors) commenced Chapter 11 cases by filing voluntary petitions with this Court. 2. BASF timely filed its proof of claim in the amount of $2,135,176.70 for the value of

goods delivered prior to the Petition Date. 3. From April 22, 2008 through June 12, 2008, Alex Soullier, a representative of the

Debtors or the Debtors successors in interest, communicated with BASF regarding BASFs claim amount. Mr. Soullier initially requested that BASF consent to a reduced claim amount of $2,024189.12. After further reconciliation, on May 16, 2008, Mr. Soullier stated: The new total amount of the claim is $2,110,196.92. BASF agreed by email to accept this reduced amount. 4. Subsequently, on June 12, 2008, Mr. Soullier stated that the bankruptcy claim

reviewers had raised a further issue regarding whether an invoice in the amount of $60,362.55

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might have been more appropriately characterized as a post-petition claim instead of a prepetition general unsecured claim. 5. This last issue was not resolved and on July 30, 2008, the Debtors Litigation Trust

(the Trust) filed its seventy-third (73d) omnibus objection to claims (the Objection) asserting that BASFs claim has no support in the Debtors books and records and requesting that the Court expunge BASFs claim in full. 6. The full text of the substance of the Trusts objection is as follows: The Debtors and the Trust are in the process of reviewing an evaluating the claims that have been filed. In that process, the claims set forth on Exhibit B have been identified as having no basis in the books and records of the Debtors. The Trust cannot verify that the Debtors had any obligation to the Claimants listed on Exhibit B. Therefore, the claims identified on Exhibit B should be disallowed and expunged for all purposes. ARGUMENT 7. A proof of claim executed and filed according to the requirements of Bankruptcy

Rule 3001(f) constitutes prima facie evidence of the validity and amount of the claim. Fed.R.Bankr.P. 3001(f). The interposition of an objection does not deprive the proof of claim of presumptive validity unless the objection is supported by substantial evidence. In re Hemingway Transport, Inc., 993 F.2d 915, 925 (1st Cir.1993). 8. BASFs proof of claim complies with all requirements set forth in Rule 3001(a)

and substantially conforms to the appropriate Official Form. Therefore, BASFs proof of claim is entitled to presumptive validity. 9. The Trust has provided absolutely no evidence, let alone substantial evidence, to

support the Objection and simply provides a bald assertion that the claim has no basis in the

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Debtors books and records. This is clearly not sufficient to challenge the prima facie evidence of BASFs proof of claim. 10. Furthermore, the Debtors (or Trusts) own representative, Mr. Soullier, has stated

that the Debtors books and records do, in fact, support BASFs claim, in the amount of $2,110,196.92, within $15,000 of BASFs original claim. The only remaining issue raised by Mr. Soullier was whether or not $60,362.55 of this amount might be more appropriately characterized as a post-petition administrative expense claim. 11. Thus, the Trusts factual allegation that BASFs proof of claim has no basis in the

Debtors books and records is plainly incorrect and the Trusts request to expunge BASFs full claim is, at best, inappropriate. CONCLUSION 12. Therefore, the Trusts objection should be overruled and BASFs claim should be

allowed in full. In addition, BASF should be refunded the full amount of its costs and expenses, including attorneys fees, incurred in responding to this frivolous objection.

Respectfully submitted, SCHAFER AND WEINER, PLLC

By: /s/ Ryan D. Heilman RYAN D. HEILMAN (P63952) Counsel for BASF Corporation 40950 Woodward Ave., Ste. 100 Bloomfield Hills, MI 48304 (248) 540-3340 rheilman@schaferandweiner.com Dated: September 2, 2008

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