IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION,

et al. Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification # 13-3489233) Honorable Steven W. Rhodes

OFFICIAL COMMITTEE OF UNSECURED CREDITORS MOTION FOR ORDER ALLOWING DISCOVERY OF GENERAL MOTORS CORPORATION IN CONTESTED MATTER The Official Committee of Unsecured Creditors (the Committee) of Collins & Aikman Corporation, et al. (collectively, the Debtors) hereby files this motion (the Motion) for an Order Allowing Discovery of General Motors Corporation (GM). In support of the Motion, the Committee respectfully represents as follows: PRELIMINARY STATEMENT 1. As the Court is aware, GM has filed a motion to obtain contingent relief from the

automatic stay to take possession of certain tooling in which GM asserts an ownership interest. The Committee has filed an objection to the motion and the Debtors have filed a motion to take discovery of GM with respect to GMs requested relief. As per the Courts prior instructions, the Debtors, Committee and GM are attempting to negotiate a stipulation with respect to the requested discovery. The Committee, however, is filing this Motion to take discovery of GM out of an abundance of caution and in order to protect the interests of the Debtors unsecured creditors in the event the parties are unable to resolve issues related to discovery. The Committee intends work cooperatively with the Debtors and GM to avoid issuing redundant

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discovery requests and to minimize duplicative questioning at any depositions. To the extent the parties resolve their discovery related issues, the Committee intends to withdraw this Motion. JURISDICTION AND VENUE 2. This Court has jurisdiction over this Motion pursuant to 28 U.S.C. 157 and

1334. Venue of this proceeding and Motion is proper in this district pursuant to 28 U.S.C. 1408 and 1409. The predicate for the relief sought herein is Rules 7026 and 7028 through 7037 of the Federal Rules of Bankruptcy Procedures (the Bankruptcy Rules) and this Court's Administrative Order No. 00-04. BACKGROUND 3. On May 17, 2005 (the Petition Date), each of the Debtors commenced with this

Court a voluntary case under chapter 11 of title 11 of the United States Code (the Bankruptcy Code). 4. Since the Petition Date, the Debtors have continued in possession of their

properties, and have continued to operate and manage their businesses as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 5. On May 24, 2005, pursuant to section 1102 of the Bankruptcy Code, the United

States Trustee for the Eastern District of Michigan appointed the Committee. 6. On September 2, 2005, GM filed a motion (the GM Tooling Motion) seeking

contingent relief from the automatic stay to allow GM to exercise its alleged contractual right to possess certain tooling (the Tooling) in the event that (i) the Debtors reject a Production Purchase Order, (ii) the Debtors decide to close a manufacturing facility, or (iii) there is inadequate financing for the Debtors operations.

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7.

On September 23, 2005, the Committee filed an objection (the Objection) to the

GM Tooling Motion. 8. The GM Tooling Motion was initially set for hearing (the Tooling Hearing) by

the Court on September 30, 2005. The Tooling Hearing, however, has been repeatedly adjourned to the following dates: (i) October 7, 2005, (ii) October 14, 2005, (iii) November 10, 2005, (iv) December 8, 2005, (v) January 5, 2006, (vi) February 16, 2006, (vi) April 6, 2006, (viii) July 13, 2006, (ix) August 17, 2006 and (x) October 12, 2006. 9. On June 28, 2006, the Debtors filed the Debtors Motion seeking to Dismiss

General Motors Corporations Motion for Contingent Relief from Automatic Stay to Obtain Possession of Tooling (the Dismissal Motion). On August 10, 2006, the Committee filed a Joinder to the Debtors Dismissal Motion. The hearing on the Dismissal Motion is currently scheduled for October 12, 2006. 10. On June 28, 2006, the Debtors filed the Debtors Motion for an Order Allowing

Discovery in Contested Matter (the Debtors Discovery Motion). REQUESTED RELIEF 11. Because the GM Tooling Motion raises numerous factual and legal issues that

cannot be resolved without discovery, including certain issues raised specifically by the Committee in its Objection to the GM Tooling Motion, the Committee seeks the entry of an Order directing that Bankruptcy Rules. 7026 and 7028 through 7037 apply to this contested matter and that all objecting parties, including the Debtors and the Committee, be permitted to conduct discovery pursuant to the above rules.

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BASIS FOR RELIEF 12. Rule 26 of the Federal Rules of Civil Procedures and Bankruptcy Rule 7026,

which govern discovery in contested matters, provide that a party may obtain discovery regarding any matter relevant to the claim or defense of any party. The GM Tooling Motion is being contested by the Debtors and the Committee and, therefore, qualifies as a contested matter. 13. Pursuant to Administrative Order 00-04, a court order is required to obtain

discovery in a contested matter. 14. The Debtors Discovery Motion discusses certain factual issues raised by the GM

Tooling Motion including GMs alleged rights in the Tooling, the rights of the Debtors and other third parties in the Tooling, and whether GM has properly paid for the Tooling. The Committee agrees with the Debtors that these issues cannot be resolved without discovery. 15. As noted in its Objection to the GM Tooling Motion, the Committee believes that

the GM Tooling Motion raises a number of additional factual and legal issues, including, among others: (a) whether the Tooling transactions at issue constitute financial or sale transactions; (b) whether the Debtors and/or non-Debtor third parties have molders liens or other statutory liens in the Tooling which would encumber GMs alleged ownership interests; (c) whether the Debtors have rights of setoff against the GM that would create a property right in the Tooling in favor of the Debtors; (d) whether the Debtors have intellectual property rights in the Tooling or the byproducts thereof that would be infringed upon by any attempt to take possession of and/or use such Tooling. These factual and legal issues also require discovery. 16. For these reasons, the Committee respectfully submits that Bankruptcy Rules

7026 and 7028 through 7037 should apply to this contested matter, and that all objecting parties, including the Committee, should be permitted to conduct discovery pursuant to those rules.

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17.

If the Court does order that Bankruptcy Rules 7026 and 7028 through 7037 apply

to this contested matter, although the Committee intends to issue its own discovery requests and deposition notices if necessary, it will work with the Debtors and GM to avoid issuing redundant discovery requests and to minimize duplicative questioning at depositions. 18. The Committee is currently working with GM and the Debtors to reach a

stipulated resolution of the discovery issues relating to the GM Tooling Motion. In the event that such a resolution is reached, the Committee will withdraw the Motion. CONCLUSION 19. For the reasons stated above, the Committee seeks the entry of an Order directing

that Bankruptcy Rules 7026 and 7028 through 7037 apply to this contested matter and that all objecting parties, including the Debtors and the Committee, be permitted to conduct discovery pursuant to the above rules. WHEREFORE, the Committee respectfully requests that the Court enter an order in form attached as Exhibit A, and grant the Committee such other and further relief as this Court finds just, proper and equitable. Dated: August 23, 2006 Respectfully Submitted, By: __/s/ _Abid Qureshi__________________________ AKIN GUMP STRAUSS HAUER & FELD LLP Michael S. Stamer, Esquire Abid Qureshi, Esquire Philip C. Dublin, Esquire Alexis Freeman, Esquire 590 Madison Avenue New York, NY 10022-2524 Telephone: (212) 872-1000 Facsimile: (212) 872-1002

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Counsel for the Official Committee of Unsecured Creditors

BUTZEL LONG Thomas B. Radom, Esquire(P24631) Suite 200 100 Bloomfield Hills Parkway Bloomfield Hills, MI 48304 Telephone: (248) 258-1413 Facsimile: (248) 258-1439 Email: radom@butzel.com

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IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION, et al. Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification # 13-3489233) Honorable Steven W. Rhodes

ORDER ALLOWING DISCOVERY IN CONTESTED MATTER Upon the motion (the Motion) of the Official Committee of Unsecured Creditors (the Committee) of Collins & Aikman Corporation, et al. (collectively, the Debtors) for Order Allowing Discovery of General Motors Corporation (GM) in Contested Matter; and it appearing that due notice of the Motion has been given to all parties entitled to such notice; and sufficient cause appearing therefore; it is hereby ORDERED, ADJUDGED and DECREED: 1. that all capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Motion; 2. that discovery shall be permitted in connection with the GM Tooling Motion, including, without limitation, interrogatories, requests for production, requests for admission, subpoenas, and the taking of depositions prior to any evidentiary or final hearing on the GM Tooling Motion; 3. that all parties objecting to the GM Tooling Motion shall be permitted to conduct discovery pursuant to this Order; and

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4.

that Fed. R. Bankr. P. 7026 and 7028 through 7037 shall apply in this contested matter.

Dated: August __, 2006

__________________________________ HONORABLE STEVEN W. RHODES UNITED STATES BANKRUPTCY JUDGE

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