UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In Re: Collins & Aikman Products Company

Debtor. Chapter 11 Case Number: 05-55927, et al Honorable Steven W. Rhodes

___________________________________________________________________________ OBJECTION OF GARAN LUCOW MILLER, P.C. TO FIRST AMENDED JOINT PLAN OF COLLINS & AIKMAN CORPORATION AND ITS DEBTOR SUBSIDIARIES Garan Lucow Miller, P.C. (GLM) hereby files this objection to the First Amended Joint Plan of Collins & Aikman Corporation and its Debtor Subsidiaries (the Plan). In support of the Objection, GLM states as follows: BACKGROUND 1. On May 17, 2005, Collins & Aikman Corporation and several of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. 2. On January 24, 2007, Debtors filed their Amended Disclosure Statement for the First Amended Joint Plan of Collins & Aikman Corporation and its Debtor Subsidiaries (the Disclosure Statement), which this Court approved on February 9, 2007. 3. The Disclosure Statement provides that certain Causes of Action (as defined by the Plan) will be transferred to, and preserved for the benefit of, the Litigation Trust (as defined by the Plan). (Disclosure Statement at I.G.1.) The persons against whom such causes of action may be brought are set forth on Exhibit A to the Plan. (See Plan, Ex A). Neither the Plan nor Exhibit A to the Plan identifies (i) the nature of the

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causes of action against the potential defendants, or (ii) the specific Debtor holding the cause of action. 4. Sometime after February 9, 2007 the Debtors sent a copy of a Notice to Parties to Retained Causes of Action (the Notice). The Notice did not provide any specific reason why GLM was named in Exhibit A as a Potential Retained Cause of Action. 5. Upon receipt of the Notice, GLM undertook an internal investigation to determine the nature of its relationship with the Debtors. Upon information and belief, GLM has no connection to any of the Debtor entities and, to the best of its knowledge, GLM has never engaged in business dealings with any of the Debtors and has not represented them in any capacity. Furthermore, GLM is not a party to the Plan, nor is it a Creditor. 6. GLM contacted the Debtors to determine why it was being listed on Exhibit A for Potential Retained Causes of Action and was not given a concrete reason except that the Debtors have attempted to list any entity that shows up on their records anywhere. OBJECTION 7. Section 1129 of the Bankruptcy Code provides, among other things, that in order for a bankruptcy court to confirm a plan, the plan must be proposed in good faith and not by any means forbidden by law. 11 U.S.C. 1129(a)(3). Because the Debtors have included GLM, and most likely others, on Exhibit A to the proposed Plan for no apparent reason, GLM submits that the Debtors have not proposed their plan in good faith.

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8.

As a debtor in possession, the Debtors are subject to the duties and obligations of a Chapter 11 trustee. 11 U.S.C. 1107(a). Chapter 11 trustees are required to, among other things, perform the duties of a trustee as specified in 704(7) of the Bankruptcy Code. 11 U.S.C. 1106(a)(1). Section 704(7) requires a trustee to furnish such information concerning the estate and the estates administration as is requested by a party in interest, unless the court orders otherwise. 11 U.S.C. 704(7). Therefore, upon request of parties such as GLM, the Debtors have a duty to provide information concerning the Debtors estates and their administration.

9.

The Debtors refusal to provide information responsive to such a reasonable request under the circumstances suggests that the Debtors are not fulfilling the duties imposed upon them by the Bankruptcy Code. Such conduct leads to an inference that the Debtors have failed to diligently investigate whether a cause of action does in fact exist against GLM. Based on GLMs conversations with the Debtors, it appears that the Debtors may have arbitrarily included GLM on Exhibit A to the Plan without first conducting an investigation. GLM hopes that this is not the case, but based on the Debtors responses, cannot conclude otherwise.

10. 11. 12.

GLM therefore objects to the Debtors Plan as not being proposed in good faith. GLM also objects to the Debtors Plan as it should not be subject to the Plan. GLM reserves its right to amend this objection to include other objections to the Plan.

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WHEREFORE, GLM respectfully requests that this Honorable Court enter an order denying confirmation of the Plan and granting all other relief that is just and equitable. Respectfully Submitted, GARAN LUCOW MILLER, P.C.

/s KELLIE M. BLAIR (P58642) 1111 W. Long Lake Road, Suite 300 Troy, Michigan 48098-6333 (248) 641-7600 kblair@garanlucow.com Dated: May 7, 2007

CERTIFICATE OF SERVICE I hereby certify that on May 7, 2007 I electronically filed the foregoing with the Clerk of the Court using the ECF system which will send notification of such filing. GARAN LUCOW MILLER, P.C.

By:

/s KELLIE M. BLAIR (P58642) 1111 W. Long Lake Road, Suite 300 Troy, Michigan 48098-6333 (248) 641-7600 kblair@garanlucow.com

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