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) Hon.Steven W. Rhodes

MACRODYNE TECHNOLOGIES, INC.S RESPONSE TO COLLINS & AIKMAN LITIGATION TRUSTS SEVENTY-FIRST OMNIBUS OBJECTION TO CLAIMS (INSUFFICIENT BOOKS AND RECORDS) [DOCKET NO. 9839] Macrodyne Technologies, Inc. (Macrodyne) responds to the Collins & Aikman Litigation Trusts Seventy-First Omnibus Objection to Claims (Insufficient Books and Records) as follows: 1. Claim No. 3464. 2. On or about July 30, 2008, the Trust filed its Omnibus Objection [Docket No. 9839] to Macrodyne timely filed its proof of claim in the amount of $176,835.12 which was assigned

numerous claims, including Claim No. 3464 filed by Macrodyne. The stated basis for the objection is 11 U.S.C. 502(d). (The Trust also claims that Macrodynes claim is not supported by the Debtors books and records). 3. Macrodyne is a defendant in Adversary Proceeding No. 07-05269-swr wherein it is alleged

that Macrodyne received preferential transfers which are avoidable under 11 U.S.C. 547. 4. transfers. Macrodyne has denied any liability with respect to the alleged avoidable preferential

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Macrodyne provided evidence to Debtors counsel demonstrating that the alleged

preferential transfers are not avoidable under 11 U.S.C. 547 because, among other things, a) Macrodyne furnished subsequent new value to the Debtor; and b) the transfers were in the ordinary course of business. 6. Addressing the matter under Section 57(g) of the Bankruptcy Act, the predecessor to

502(d), the Supreme Court has stated that a creditors claim cannot be allowed or disallowed on grounds that the creditor has received and not repaid an avoidable transfer until the preference matter is adjudicated. Katchen v Landy, 382 U.S. 323, 86 S. Ct. 467, 15 L.Ed. 391 (1966). A creditors claim cannot be disallowed under 11 U.S.C. 502(d) until there has been actual adjudication that the creditor received an avoidable transfer. In re Sierra-Cal, 210 B.R. 168, 173 (Bankr. E.D. Cal. 1997). A judicial determination that a creditor received a preference and has failed to repay it is a pre-requisite for disallowance under 11 U.S.C. 502(d). In re Chase & Sanborn Corp., 124 B.R. 368, 370 (Bankr. S.D. Fla. 1991). See also In Re Southern Air Transport, Inc., 294 B.R. 293 (Bankr. S.D. Ohio 2003). 7. There has been no judicial determination that Macrodyne received an avoidable

preferential transfer. 8. Accordingly, the Trusts objection to Macrodynes claim is premature, lacks merit and

should be denied. 9. Additionally, the Trusts objection should be denied because the Trust has failed to provide

any evidence, let alone substantial evidence, in support of its objection. 10. Rather, the Trust simply alleges that Macrodynes claim has no basis in the Debtors books

and records without providing any factual support.

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However, such vague and conclusory allegations are insufficient as a matter of law to

challenge the prima facie evidence of Macrodynes proof of claim. 12. Specifically, a proof of claim executed and filed according to the requirements of

Bankruptcy Rule 3001(f) constitutes prima facie evidence of the validity and amount of the claim. Fed.R.Bankr.P. 3001(f). The interposition of an objection does not deprive the proof of claim of

presumptive validity unless the objection is supported by substantial evidence. In Re Hemingway Transport, Inc., 993 F.2d. 915, 925 (1st Cir. 1993). 13. validity. WHEREFORE, Macrodyne respectfully requests that this Court deny the Trusts objection, allow Macrodynes Claim No. 3464 in its entirety, award Macrodyne costs, including reasonable attorney fees, based upon the premature filing of the Trusts objection and award Macrodyne any other relief MADDIN, HAUSER, WARTELL,ROTH & HELLER, P.C. By: /s/ Michael S. Leib Michael S. Leib (P30470) Attorneys for Macrodyne Technologies, Inc. 28400 Northwestern Hwy., 3rd Floor Southfield, Michigan 48034 (248) 354-4030 Email: msl@maddinhauser.com Macrodynes claim complies with Rule 3001(a) and is therefore entitled to presumptive

Dated: September 2, 2008

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