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    In The United States Bankruptcy Court Eastern District of Michigan Southern Division

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    Chapter 11 Dockets
    The order approves a settlement agreement between certain debtors (Collins & Aikman Corporation and related entities) and Fabric (DE) GP. The settlement agreement authorizes the debtors to purchase certain properties from the landlord, assume and assign a lease to a buyer, and establishes an allowed unsecured claim for the landlord. The order stays deadlines in an avoidance action and draws on an existing letter of credit for the landlord. The order also limits the precedential effect of a prior tax order and retains jurisdiction over implementation of the settlement agreement.

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    In The United States Bankruptcy Court Eastern District of Michigan Southern Division

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    Chapter 11 Dockets
    24 views4 pages
    The order approves a settlement agreement between certain debtors (Collins & Aikman Corporation and related entities) and Fabric (DE) GP. The settlement agreement authorizes the debtors to purchase certain properties from the landlord, assume and assign a lease to a buyer, and establishes an allowed unsecured claim for the landlord. The order stays deadlines in an avoidance action and draws on an existing letter of credit for the landlord. The order also limits the precedential effect of a prior tax order and retains jurisdiction over implementation of the settlement agreement.

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    The order approves a settlement agreement between certain debtors (Collins & Aikman Corporation and related entities) and Fabric (DE) GP. The settlement agreement authorizes the debtors to purchase certain properties from the landlord, assume and assign a lease to a buyer, and establishes an allowed unsecured claim for the landlord. The order stays deadlines in an avoidance action and draws on an existing letter of credit for the landlord. The order also limits the precedential effect of a prior tax order and retains jurisdiction over implementation of the settlement agreement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views4 pages

    In The United States Bankruptcy Court Eastern District of Michigan Southern Division

    Uploaded by

    Chapter 11 Dockets
    The order approves a settlement agreement between certain debtors (Collins & Aikman Corporation and related entities) and Fabric (DE) GP. The settlement agreement authorizes the debtors to purchase certain properties from the landlord, assume and assign a lease to a buyer, and establishes an allowed unsecured claim for the landlord. The order stays deadlines in an avoidance action and draws on an existing letter of credit for the landlord. The order also limits the precedential effect of a prior tax order and retains jurisdiction over implementation of the settlement agreement.

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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

    ORDER APPROVING SETTLEMENT AGREEMENT BETWEEN CERTAIN DEBTORS AND FABRIC (DE) GP AND RELATED RELIEF Upon the motion (the Motion)2 of the above-captioned debtors (collectively, the Debtors) for the entry of an order approving and authorizing the Debtors to enter into the Settlement Agreement and authorizing the Debtors to take all actions contemplated thereunder [Docket No. 7258]; it appearing that 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

    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. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Motion.

    K&E 11823734.3

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    0555927070529000000000007

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    pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this proceeding and the Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409; it appearing that notice of the Motion and the opportunity for a hearing on the Motion was appropriate under the particular circumstances and that no other or further notice need be given; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED 1. 2. 3. The Motion is granted in its entirety. The Settlement Agreement is approved. The Debtors are authorized to enter into an agreement substantially in conformity

    with the Settlement Agreement, and if the Debtors enter into such an agreement, it is approved to the extent the Settlement Agreement is approved. 4. The Debtors are authorized to purchase the Fabrics Properties from the Landlord on

    the terms set forth in the Settlement Agreement and take any and all actions reasonably necessary to consummate such sale in all respects. 5. If the Conditions Precedent set forth in the Settlement Agreement are satisfied or

    waived in accordance with the Settlement Agreement, the Debtors are authorized to assume the Carpet & Acoustics Lease pursuant to section 365 of the Bankruptcy Code and assign the Carpet & Acoustics Lease to Buyer and the Carpet & Acoustics Lease shall be assumed and assigned to Buyer. 6. If the Conditions Precedent set forth in the Settlement Agreement are satisfied and the

    Debtors pay the amounts as set forth in the Settlement Agreement, the Landlord shall be forever barred from asserting any additional cure amounts against the Debtors and their estates with respect to the Master Lease. 7. So long as Landlord does not vote to reject the Debtors confirmed chapter 11 plan,

    Landlord shall have an aggregate allowed general unsecured claim against each Tenant of

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    K&E 11823734.3

    $14,080,908.00, which claims shall be reduced to a single claim if the Debtors are substantively consolidated or the Debtors confirmed chapter 11 plan otherwise provides for a single recovery to creditors with joint and several claims. 8. The Court hereby stays all of the deadlines for the Avoidance Action that begin on or

    after the deadline for the defendant in such action to answer or otherwise respond to such action until 30 days after the parties know that the Conditions Precedent cannot be met or will not be waived. 9. The delivery or remittance of the Existing Letter of Credit to Landlord or the

    proceeds thereof to Landlord is required and the amount of the Existing Letter of Credit shall be drawn by Landlord or its designee and not cancelled and the proceeds thereof shall be paid immediately to Landlord. 10. The Tax Order is limited strictly to the facts and circumstances arising in the context

    of the Landlord Tax Motion and the Tax Order shall not provide the basis for any law of the case, estoppel or other decision or order that would preclude the Debtors from raising any argument in defense of liability for tax obligations. 11. The Debtors are authorized to take all actions necessary to effectuate the relief

    granted pursuant to this Order in accordance with the Motion. 12. upon its entry. 13. The Court retains jurisdiction with respect to all matters arising from or related to the The terms and conditions of this Order shall be immediately effective and enforceable

    implementation of this Order.


    .

    Signed on May 25, 2007 _ __ _/s/ Steven Rhodes _ _ Steven Rhodes 14. Chief Bankruptcy Judge

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    15.

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    K&E 11823734.3

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