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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

STIPULATION RESOLVING CLAIMS This Stipulation, by and between the Collins & Aikman Post-Consummation Trust (the Trust), as successor to the above-captioned Debtors (collectively, the Debtors) pursuant to the First Amended Joint Plan of Reorganization of Collins & Aikman Corporation and its Debtor Subsidiaries as confirmed by order of the Bankruptcy Court, and the United States Department of Treasury (the Claimant) (the Trust and Claimant shall be collectively referred to as the Parties), resolves the remaining claims filed by Claimant.

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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WHEREAS, on May 17, 2005 (the Petition Date), the Debtors filed petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Eastern District of Michigan (the Bankruptcy Court); WHEREAS, Claimant filed a claim, that was assigned number 8564, in the amount of $159,448.90 (Claim 8564); WHEREAS, Claimant subsequently amended Claim 8564. Claimants amended claim was in the amount of $237,775.91 and was assigned number 8834 (Claim 8834); WHEREAS, in an effort to avoid the risks and expenses of litigation, the Parties have entered into negotiations to resolve the claims. In connection with such negotiations, the Parties have reviewed documentation and other materials relevant to the claims, including any support filed with or related to the claims and the Debtors books and records as they relate to the claims. NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, IT IS STIPULATED AND AGREED THAT: 1. 2. 3. Claim 8564 is disallowed and expunged for all purposes. Claim 8834 is amended to and allowed in the amount of $192,940.20. The Trust shall pay Claim 8834, as amended in paragraph 2 of this Stipulation,

within 15 days of the entry of an order approving this Stipulation. Payment shall be made by check, in U.S. funds, to: Internal Revenue Service P.O. Box 330500, Stop 15 Detroit, Michigan 48232 Attention: Joyce Houston, Insolvency 4. Upon entry of an order approving this Stipulation, the Trusts Twenty-Seventh

Omnibus Objection shall be withdrawn only with regard to Claim 8564 and 8834. 2

5.

The Debtors notice and claims agent, Kurtzman Carson Consultants, LLC, is

authorized to take all actions necessary to withdraw and expunge the Claim. 6. By agreeing to enter into this Stipulation, the Parties shall not be deemed to have

waived any right or remedy afforded to them under the Bankruptcy Code or otherwise, except as provided in this Stipulation. 7. This Stipulation may not be modified, altered or amended or vacated without the

written consent of all parties hereto. Any such modification, alteration, amendment or vacation, in whole or in part, shall be subject to the approval of the Bankruptcy Court. The Bankruptcy Court shall retain jurisdiction to resolve any disputes or controversies arising from or related to this Stipulation. 8. A proposed order, consistent with the terms of this Stipulation attached as Exhibit

A, shall be submitted to the Bankruptcy Court following the filing of this Stipulation. SO STIPULATED, APPROVED AS TO FORM AND CONTENT: BOYLE BURDETT By:s/H. William Burdett, Jr. Eugene H. Boyle, Jr. H. William Burdett, Jr. 14950 East Jefferson, Suite 200 Grosse Pointe Park, Michigan 48230 (313) 344-4000 (313) 344-4001 (facsimile) burdett@boyleburdett.com Attorneys for the Collins & Aikman Litigation Trust Date: October 1, 2008 UNITED STATES DEPARTMENT OF TREASURY By:s/John W. Stevens John W. Stevens 477 Michigan Avenue, Room 1870 Detroit, Michigan 48226 (313) 237-6419 (313) 2376445 (facsimile) john.w.stevens@irscounsel.treas.gov Attorneys for the United States Department of Treasury

EXHIBIT A

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION, et al.1, Debtors. ) ) ) ) ) ) ) )

Case No. 05-55927 Chapter 11 Jointly Administered Honorable Steven W. Rhodes

ORDER APPROVING STIPULATION RESOLVING CLAIMS Upon the Stipulation Resolving Claims (the Stipulation) entered into by and between the Collins & Aikman Post-Consummation Trust and the United States Department of Treasury, IT IS ORDERED: The Stipulation is approved 1. Claim 8564, as that term is defined in the Stipulation, is disallowed and expunged

for all purposes.

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

2.

Claim 8834, as that term is defined in the Stipulation, is amended to and allowed

in the amount of $192,940.20. 3. The Trust shall pay Claim 8834, as amended by paragraph 2 of the Stipulation,

within 15 days of the entry of this Order consistent with the terms laid out in the Stipulation. 4. The Trusts Twenty-Seventh Omnibus Objection is deemed withdrawn only with

regard to Claim 8564 and Claim 8834 filed by the United States Department of Treasury. 5. The Debtors notice and claims agent, Kurtzman Carson Consultants, LLC, is

authorized to take all actions necessary to withdraw and expunge the Claim.