UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN (SOUTHERN DIVISION) ) ) ) ) ) ) )

In re: COLLINS & AIKMAN CORPORATION, et al., Debtors.

Chapter 11 Hon. Steven W. Rhodes Case No. 05-55927 (SWR) Jointly Administered

OBJECTION OF MID AMERICA II, L.L.C TO DEBTORS SECOND MOTION FOR ORDER EXTENDING THE PERIOD WITHIN WHICH THE DEBTORS MUST ASSUME OR REJECT UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY NOW COMES Mid America II, L.L.C. (Mid America or Landlord), by its counsel, Erman, Teicher, Miller, Zucker & Freedman, P.C., and states its objection to Debtors Second Motion for Order Extending the Period Within Which the Debtors Must Assume or Reject Unexpired Leases of Nonresidential Real Property (the "Motion") as follows: 1. Mid America is the landlord, and Collins & Aikman Products Co. ("C&A Products" or "Debtor")1 is the tenant, of nonresidential real property known as Mid America Business Park, Building Two, 8121 Mid America Blvd., Oklahoma City, OK ( the Premises) pursuant to a lease dated March 11, 2005 (the Lease). The lease expires July 31, 2009. A copy of the Lease is attached as Exhibit A.

C&A Products is one of the debtors in these jointly-administered bankruptcy cases.

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2. C&A Products occupies 120,000 square feet of space in the subject building, consisting of 5,339 square feet of office space and 114,661 square feet of manufacturing, assembly and storage space. The Lease is a triple net lease. 3. As stated in Debtors motion, Debtors are seeking a second extension of time in which to assume or reject this lease, and have tied this extension to through and including the date a plan of reorganization is confirmed for these cases. (Proposed Order, paragraph 2.) Pursuant to court order entered on July 8, 2005, the time within which the Debtors must assume or reject the Lease is January 16, 2006. Although Debtors have filed their Second Motion for an Order Extending the Debtors Exclusivity Periods to File a Chapter 11 Plan and to Solicit Votes Thereon and have proposed that the exclusive period be extended to May 1, 2006, and the Solicitation Period be extended to June 30, 2006, in reality, Debtors are unable to state with any certainty when or whether confirmation of a plan will occur. Therefore, Debtors have proposed an essentially unlimited time in which to decide whether to assume or reject the Lease. This open-ended period of time is patently unreasonable. 4. C&A Products' operations at the Premises provide "just-in-time" inventory to a General Motors plant approximately one mile away from the Premises. Upon information and belief, General Motors will be closing this facility within the next few months. It is reasonable to conclude that Debtor will not need their manufacturing plant at the Premises once General Motors closes its facility. 5. Landlord has the present ability to mitigate its damages and to re-let 50,000 square feet of the Premises to a new tenant, at current market rates, which exceed the rates of the Lease with Debtor. Further, the new prospective tenant is affiliated with the Tinker Air Force Base as a

national defense contractor. This prospective tenant conducts business of a highly sensitive nature, in connection with Tinker AFB, and further requires heightened security at its location. Thus, any landlord will need to make special leasehold accommodations for this prospective tenant. If the prospective tenant is not able to enter into a lease with Landlord at the Premises right away, Landlord will lose this business opportunity. The prospective tenant is interested in negotiating a five (5) year lease with renewals. If Landlord is unable to immediately re-let part of the Premises to the prospective tenant, it will suffer irreparable harm, in that this tenant will not come back into the market place once it has another location from which to operate. 6. Simply put, Debtor must decide, at the present time, whether or not it needs this facility. Granting any extension of time under 11 U.S.C. 365 will cause irreparable harm to Landlord and is unfair. While Landlord respects that this is a complicated case, in light of the impending closure of the General Motors plant, Landlord respectfully asserts that Debtor is in the present position of intelligently appraising whether or not it should assume or reject this particular Lease by the current deadline of January 16, 2006. See, In re Service Merchandise Company, 256 B.R. 744, 748 (Bankr. M.D. Tenn. 2000). Even though the Debtors may need more time to determine the value of their multiple nonresidential real property leases, given the circumstances described herein, it is reasonable to expect them immediately to direct their attention to Landlord's Lease. In the case of In re Lionel Corporation, 23 B.R. 224, 226 (Bankr. S.D. N.Y. 1982), the bankruptcy court directed the debtor to assume or reject a particular real estate lease within 20 days of the hearing, even though the case involved 90 such leases and the debtor had retained a real estate consultant to evaluate its leases, when the landlord had made "diligent application for review of its particular premises." The debtor in Lionel had already

applied for an extension beyond the 60-day statutory period of time and its real estate consultant had been employed for approximately 4 months. Thus, the court found that the debtor had had "ample time to address the issues concerning the premises in question." Lionel at 226. Landlord maintains that the Debtors are in a similar situation as to Landlord's Lease and that they should be able to intelligently evaluate the value of the Lease to the bankruptcy estate by January 16, 2006. 7. In the event the Court determines that Debtors should have additional time to assume or reject the Lease, Landlord requests that this time be limited to no more than an additional 30 days. Further, any continuation of the time to assume or reject the Lease should be conditioned on the continued performance of all lease obligations. Debtors must provide adequate assurance that it will perform all of its obligations under the Lease. At present, there is approximately $15,000.00 owing for ad valorem taxes, insurance, and common area costs. Landlord requests that any extension of the time to assume or reject the Lease be conditioned on the Debtors immediately paying this amount to the Landlord. 8. In the event the Court rules in Debtors' favor, Landlord requests that any order pursuant to the Motion provide that the order is without prejudice to Landlords right to move for the assumption or rejection of the Lease at any time during these bankruptcy cases. WHEREFORE, Mid America II, L.L.C. requests: 1. Debtors Motion be denied; 2. Debtors be required to assume or reject the Lease effective January 16, 2006; 3. If an extension of time is granted, that it be no greater that 30 days;

4. Any extension granted be conditioned on the immediate payment of all 2005 ad valorem taxes, insurance and common area costs, estimated to be $15,000; and, 5. Such other relief as this Court deems appropriate. Respectfully submitted, /s/ Julie Beth Teicher Julie Beth Teicher, Esq. (P34300) ERMAN, TEICHER, MILLER, ZUCKER & FREEDMAN, P.C. Attorneys for Mid America II, L.L.C. 400 Galleria Officentre, Suite 444 Southfield, MI 48034 (248) 827-4100 jteicher@ermanteicher.com Dated: December 30, 2005

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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION IN RE: COLLINS & AIKMAN CORPORATION, et al. Debtors. / Chapter 11 Case No. 05-55927-R (Jointly Administered) Hon. Steven W. Rhodes

CERTIFICATE OF SERVICE The undersigned states she served papers as follows: 1. Document served: Objection of Mid America II, L.L.C. to Debtors Second Motion for Order Extending the Period Within Which the Debtors Must Assume or Reject Unexpired Leases of NonResidential Real Property Primary Service List #9 Dated December 1, 2005 First Class Mail December 30, 2005 /s/ Rhonda Odden Rhonda Odden Erman, Teicher, Miller, Zucker & Freedman, P.C. 400 Galleria Officentre, Suite 444 Southfield, MI 48034 (248) 827-4100
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2. Served Upon: 3. Method of service: 4. Date of service: