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
Hearing Date (if necessary): February 15, 2007 at 2:00 p.m. Objection Deadline: February 14, 2007 at 12:00 p.m.

DEBTORS MOTION FOR THE ENTRY OF AN ORDER APPROVING STANDARD PROCEDURES TO BE UTILIZED IN CONNECTION WITH CERTAIN ASSET SALES The above-captioned debtors (collectively, the Debtors) hereby move the Court (this Motion) for the entry of an order, substantially in the form of Exhibit A, approving standard procedures to be utilized in connection with certain asset sales. In support of this Motion, the Debtors respectfully state as follows:

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. 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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0555927070212000000000028

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Introduction 1. As the Debtors have disclosed to the Court and publicly, to maximize the value of

the Debtors estates and save jobs, the Debtors are pursuing a cooperative sale process, which the Debtors expect will culminate with the confirmation of a chapter 11 plan. In connection with this process, the Debtors negotiated, and the Court recently approved on a final basis, the Customer Agreement (as defined below). In addition, the Debtors have filed their Plan (as defined below) and recently commenced the solicitation process in connection therewith. The Customer Agreement, among other things, provides for a framework to facilitate the orderly sale of a majority of the Debtors businesses with the support of the agents for the Debtors senior, secured prepetition and postpetition lenders (collectively, the Agents) and the Debtors principal customers (the Customers). Accordingly, to maximize the value of the various asset sales contemplated by the Customer Agreement and the Plan and to minimize costs and delays, the Debtors have determined to obtain approval of standard procedures that they may utilize in connection with certain of these sales. Jurisdiction 2. The Court has jurisdiction over this matter pursuant to 28 U.S.C. 1334. This

matter is a core proceeding within the meaning of 28 U.S.C. 157(b)(2). 3. 4. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. The statutory bases for the relief requested herein are section 363 of the

Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code) and Rules 2002 and 6004 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules). Background 5. On May 17, 2005 (the Petition Date), the Debtors filed their voluntary petitions

for relief under chapter 11 of the Bankruptcy Code. The Debtors are operating their businesses 2
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and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these cases. On the Petition Date, the Court entered an order jointly administering these cases pursuant to Bankruptcy Rule 1015(b). 6. On May 24, 2005, the United States trustee appointed the official committee of

unsecured creditors pursuant to section 1102 of the Bankruptcy Code (the Committee). 7. On January 17, 2007, the Court approved on a final basis that certain

Customer Agreement (the Customer Agreement) by and between the Debtors, the Agents and the Customers [Docket No. 3918]. 8. On January 24, 2007, the Debtors filed the First Amended Joint Plan of Collins & On

Aikman Corporation and Its Debtor Subsidiaries [Docket No. 3976] (the Plan).

January 26, 2007, the Court entered an order approving the Debtors disclosure statement related to the Plan [Docket No. 3988]. Pursuant to this order, the Debtors recently commenced the solicitation process in connection with the Plan. Relief Requested 9. The Debtors have determined that the procedures proposed herein and

substantially in the form of Exhibit B (the Sale Procedures) are the most likely mechanisms for maximizing the realizable value of the various asset sales resulting from the wind-down of the Debtors operations, while providing clear, advance notice to parties in interest of the ground rules for such sales. Accordingly, by this Motion, the Debtors seek approval of the

3
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Sale Procedures to be utilized in connection with sales (the Sales) of assets with a selling price equal to or less than $100 million (the Assets).2 The Sale Procedures 10. The Debtors propose to sell each of the Assets for the highest and best offer

received, taking into consideration the exigencies and circumstances, pursuant to the following procedures:3 (a) (b) (c) The Debtors will market the Assets to those parties reasonably known by the Debtors to have a potential interest in purchasing the Assets. Only Qualified Bids will be considered by the Debtors. After reviewing the Qualified Bids received, the Debtors, after consulting with the agent for the Debtors senior, secured prepetition lenders (the Prepetition Agent) and the Committee, will designate the Qualified Bidder submitting the highest or otherwise best Qualified Bid as the stalking horse bidder (the Stalking Horse). The Debtors will then file a notice with the Court, the contents of which will include: (i) the identity of the proposed Stalking Horse; (ii) the proposed terms of the bid submitted by the Stalking Horse (in the form of a binding term sheet or executed asset purchase agreement); (iii) any proposed Break-Up Fee (as defined below) and/or Overbid Protection (as defined below); (iv) the Debtors rationale establishing why the Break-Up Fee is an appropriate administrative expense of the Debtors estates;4 and (v) the date and location of any auction to be conducted by the Debtors (the Sale Notice). The Debtors will serve a copy of such notice upon (i) the Primary Service List5 and (ii) all parties reasonably known by the Debtors to have a potential interest in purchasing the Assets (collectively, the Notice Parties).

(d)

(e)

2 3

Nothing in this Motion shall modify or affect the Order Establishing Procedures for the Sale or Abandonment of De Minimis Assets [Docket No. 445]. The summary of the Sale Procedures provided in this Motion is for the convenience of the Court and parties only and is subject in every respect to the Sale Procedures set forth on Exhibit B. In the event of a conflict between Exhibit B and this summary, Exhibit B shall govern. Capitalized terms used but not otherwise defined herein shall have the meanings set forth on Exhibit B. The Debtors seek to include this information to address the Courts concerns regarding break-up fees for stalking horses stated on the record at the January 11, 2007 omnibus hearing. See January 11, 2007 Hearing Transcript, p. 10. Primary Service List shall have the meaning set forth in the First Amended Notice, Case Management and Administrative Procedures filed on June 9, 2005 [Docket No. 294].

4 5

4
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(f)

If no written objections are filed by the Notice Parties within ten days of the date of the Sale Notice, the Stalking Horse and any proposed Break-Up Fee and/or Overbid Protection, as applicable, will be approved and the Debtors will file a certificate of no objection with a proposed order reflecting the same. The Break-Up Fee, if any, will constitute an allowed administrative expense pursuant to section 503(b)(1) of the Bankruptcy Code and will be paid by the Debtors in accordance with the terms of the proposed Stalking Horse bid set forth in the Sale Notice. If a written objection is received from a Notice Party within such ten-day period that cannot be resolved, the Stalking Horse, the Break-Up Fee and/or Overbid Protection, as applicable, will only be approved upon withdrawal of such written objection or further order of the Court. If the Debtors receive more than one Qualified Bid, the Debtors will conduct an auction (the Auction). At the conclusion of the Auction or promptly following the Bid Deadline if only one Qualified Bid is received by the Debtors, the Debtors will determine, after consulting with the Prepetition Agent and the Committee, the party (the Successful Bidder) submitting the highest or otherwise best bid (the Successful Bid). In determining the Successful Bid, the Debtors will consider, among other things, the total consideration to be received by their estates as well as other financial and contractual terms relevant to the sale process, including those factors affecting speed and certainty of consummating the sale. The Debtors will then file a motion with the Court seeking approval of the Successful Bid to be heard at the omnibus hearing that is at least five days after the filing of such motion (the Sale Hearing). Upon failure to consummate any sale because of a breach or failure on the part of any Successful Bidder after an order entered at the Sale Hearing, the Debtors will be permitted to select, after consulting with the Prepetition Agent and the Committee, the next highest or otherwise best bid to be the Successful Bid and to consummate such transaction without further order of the Court. The Bid Protections

(g)

(h) (i)

(j)

(k)

(l)

11.

To induce potential purchasers to expend the time, energy and resources

necessary to submit a Qualified Bid that the Debtors can use as a minimum or stalking horse bid, the Debtors request authority to offer, in their sole discretion, after consulting with the Prepetition Agent and the Committee, a break-up fee, including expense reimbursement, (the 5
K&E 11610546.6

Break-Up Fee) not more than the greater of (a) 2.5% of the cash value of the Qualified Bid designated by the Debtors as the stalking horse bid and (b) $125,000. The Break-Up Fee, however, would not be offered with respect to insiders of the Debtors, nor will the Break-Up Fee be paid more than once as to any particular Sale. The Debtors also request that, in the event the Break-Up Fee becomes due and payable, the Break-Up Fee be an allowed administrative expense pursuant to section 503(b)(1) of the Bankruptcy Code in these cases. 12. In addition, the Debtors seek authority to offer, in their sole discretion, after In

consulting with the Prepetition Agent and the Committee, certain overbid protections.

particular, pursuant to the Sale Procedures, the Debtors may require (a) for any competing bid submitted after the designation of the Stalking Horse, an initial minimum overbid in the amount of any Break-Up Fee plus an amount up to 10% of the cash value of the Stalking Horse bid and (b) that any additional competing bids submitted thereafter be in minimum additional increments up to 10% of the cash value of the Stalking Horse bid (collectively, the Overbid Protections). Basis for Relief A. Approval of the Sale Procedures 13. Section 363(b) of the Bankruptcy Code provides, in relevant part, that the

trustee, after notice and a hearing, may use, . . . other than in the ordinary course of business, property of the estate. 11 U.S.C. 363(b). A court has the statutory authority to authorize a debtor to use property of the estate pursuant to section 363(b)(1) of the Bankruptcy Code when such use is an exercise of the debtors sound business judgment and when the use of the property is proposed in good faith. See Stephen Indus., Inc. v. McClung, 789 F.2d 386, 390 (6th Cir. 1986) (adopting the sound business purpose standard for sales proposed pursuant to section 363(b)(1)); see also Fulton State Bank v. Schipper, 933 F.2d 513, 515 (7th Cir. 1991) (a debtors decision must be supported by some articulated business justification); In re Lionel 6
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Corp., 722 F.2d 1063, 1070 (2d Cir. 1983); In re Montgomery Ward Holding Corp., 242 B.R. 147, 153 (D. Del. 1999); In re Delaware & Hudson Ry. Co., 124 B.R. 169, 176 (D. Del. 1991); In re Ernst Home Center, Inc., 209 B.R. 974, 979 (Bankr. W.D. Wash. 1997). 14. Under section 363(b), a debtor has the burden to establish that it has a valid

business purpose for using estate property outside the ordinary course of business. See Lionel, 722 F.2d at 1070-71. Once the debtor has articulated such a valid business purpose, however, a presumption arises that the debtors decision was made on an informed basis, in good faith and in the honest belief that the action was in the debtors best interest. See In re Integrated Resources, Inc., 147 B.R. 650, 656 (S.D.N.Y. 1992). A party in interest seeking to challenge the debtors valid business purpose must produce some evidence supporting its objections. Montgomery Ward, 242 B.R. at 155. 15. Courts have made clear that a debtors business judgment is entitled to substantial

deference with respect to the procedures to be used in selling assets from the estate. See, e.g., In re After Six, Inc., 154 B.R. 876, 881 (Bankr. E.D. Pa. 1993) (noting that courts should defer to debtors business judgment with respect to bidding on assets); Integrated Resources, 147 B.R. at 656-57 (Bankr. S.D.N.Y. 1992) (noting that overbid procedures and break-up fee arrangements that have been negotiated by a debtor are to be reviewed according to the deferential business judgment standard, under which such procedures and arrangements are presumptively valid); In re 995 Fifth Ave. Assocs., L.P., 96 B.R. 24, 28 (Bankr. S.D.N.Y. 1989) (same). 16. The paramount goal in any proposed sale of property of the estate is to maximize

the proceeds received by the estate. See, e.g., In re Food Barn Stores, Inc., 107 F.3d 558, 564-65 (8th Cir. 1997) (in bankruptcy sales, a primary objective of the Code [is] to enhance the value of the estate at hand); Integrated Resources, 147 B.R. at 659 (It is a well-established principle

7
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of bankruptcy law that the . . . [debtors] duty with respect to such sales is to obtain the highest price or greatest overall benefit possible for the estate.) (quoting In re Atlanta Packaging Prods., Inc., 99 B.R. 124, 130 (Bankr. N.D. Ga. 1988)). 17. To that end, courts uniformly recognize that procedures intended to enhance

competitive bidding are consistent with the goal of maximizing the value received by the estate and therefore are appropriate in the context of bankruptcy sales. See, e.g., In re Finl News Network, Inc., 126 B.R. 152, 156 (Bankr. S.D.N.Y. 1991) (court-imposed rules for the disposition of assets . . . [should] provide an adequate basis for comparison of offers, and [should] provide for a fair and efficient resolution of bankrupt estates). 18. Indeed, procedures to dispose of certain assets, similar to the proposed

Sale Procedures, have been approved in other large, complex chapter 11 cases. See In re Oxford Automotive, Inc., et al., Case No. 04-74377 (Bankr. E.D. Mich. Jan. 24, 2005); see also In re Calpine Corporation, Case No. 05-60200 (Bankr. S.D.N.Y. Dec. 6, 2006); In re Kmart Corp., et al., 02-B02474 (Bankr. N.D. Ill. Sept. 4, 2002); In re Polaroid Corp., Case No. 01-10864 (Bankr. D. Del. Nov. 19, 2001). 19. The Debtors believe that the Sale Procedures will establish the parameters under

which the value of the Assets may be tested at an Auction and ensuing Sale Hearing. Such procedures will increase the likelihood that the Debtors will receive the greatest possible consideration for each of the Assets because they will ensure a competitive and fair bidding process. They also allow the Debtors to undertake an Auction in as expeditious and efficient manner as possible, which the Debtors believe is essential to maintaining and maximizing the value of their estates.

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20.

The Debtors also believe that the proposed Sale Procedures will promote active

bidding from seriously interested parties and will dispel any doubt as to the best and highest offer reasonably available for the Debtors assets. In particular, the proposed Sale Procedures will allow the Debtors to conduct an Auction in a controlled, fair and open fashion that will encourage participation by financially capable bidders who demonstrate the ability to close a transaction. The Debtors believe that the Sale Procedures will encourage bidding for the Assets and are consistent with the relevant standards governing auction proceedings and bidding incentives in bankruptcy proceedings. See Integrated Resources, 147 B.R. at 659; 995 Fifth Ave. Assocs., 96 B.R. at 28. 21. Accordingly, the proposed Sale Procedures are reasonable, appropriate and within

the Debtors sound business judgment under the circumstances. B. Authority to Offer the Bid Protections 22. The Debtors submit that break-up fees and overbid protections are a normal and

oftentimes necessary component of sales outside the ordinary course of business under section 363. In particular, a break-up fee encourages a potential purchaser to invest the requisite time, money and effort to conduct due diligence and sale negotiations with a debtor despite the inherent risks and uncertainties of the chapter 11 process. See, e.g., In re Comdisco, Inc., Case No. 01-24795 (RB) (Bankr. N.D. Ill. Aug. 9, 2002) (approving a termination fee as, inter alia, an actual and necessary cost and expense of preserving the debtors estate, of substantial benefit to the debtors estate and a necessary inducement for, and a condition to, the proposed purchasers entry into the purchase agreement); Integrated Resources, 147 B.R. at 660 (noting that break-up fees may be legitimately necessary to convince a white knight to offer an initial bid by providing some form of compensation for the expenses such bidder incurs and the risks such bidder faces by having its offer held open, subject to higher and better offers); In re 9
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Hupp Indus., 140 B.R. 191, 194 (Bankr. N.D. Ohio 1997) ([W]ithout [break-up] fees, bidders would be reluctant to make an initial bid for fear that their first bid will be shopped around for a higher bid from another bidder who would capitalize on the initial bidders due diligence); In re Marrose Corp., 1992 WL 33848, at *5 (Bankr. S.D.N.Y. 1992) (stating that [a]greements to provide breakup fees or reimbursement of fees and expenses are meant to compensate the potential acquirer who serves as a catalyst or stalking horse which attracts more favorable offers); 995 Fifth Ave. Assocs., 96 B.R. at 28 (finding that bidding incentives may be legitimately necessary to convince a white knight to enter the bidding by providing some form of compensation for the risks it is undertaking) (citations omitted). 23. Courts have generally considered three factors when assessing proposals for such

break-up fees: (a) whether the relationship of the parties who negotiated the break-up fee is tainted by self-dealing or manipulation; (b) whether the fee hampers, rather than encourages, bidding; and (c) whether the amount of the fee is unreasonable relative to the proposed purchase price. See Integrated Resources, 147 B.R. at 657. Here, each of these three factors support approval of the Break-Up Fee. 24. The proposed Break-Up Fee will be of substantial benefit to the Debtors, their

creditors and estates. In particular, the Break-Up Fee will encourage bidding and increase the likelihood that the best possible price for the Assets will be received by providing incentive to potential purchasers to expend the resources necessary to formulate offers. See, e.g., Comdisco, Case No. 01-24795 (RB) (Bankr. N.D. Ill. Aug. 9, 2002) (finding proposed termination fee to be of substantial benefit to the debtors estate); Kmart, Case No. 02-B02474 (SPS) (Bankr. N.D. Ill. May 10, 2002); Integrated Resources, 147 B.R. at 659 (Break-up fees are important tools to encourage bidding and to maximize the value of the debtors assets).

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25.

In addition, the Debtors believe that the proposed Break-Up Fee is fair and

reasonable. Indeed, the Break-Up Fee, in terms of its percentage, is of the same order of magnitude as break-up fees approved in other cases. See, e.g., In re Am. Intl Corp., Case No. 05-47794 (Bankr. E.D. Mich. March 10, 2006) (2% break-up fee); In re Trim Trends Co., LLC, Case No. 05-56108 (Bankr. E.D. Mich. Oct. 31, 2005) (3% break-up fee); see also In re Great Northern Paper, Inc., Case No. 03-10048 (Bankr. D. Me. Feb. 18, 2003) (5.4% break-up fee); In re FSC Corp., Case No. 00-04659 (Bankr. N.D. Ill. Feb. 28, 2000) (3.4% break-up fee); In re Hechinger Inv. Co., Case No. 99-02261 (PJW) (Bankr. D. Del. Oct. 1, 1999) (3% break-up fee); In re Montgomery Ward Holding Corp., Case No. 97-01409 (PJW) (Bankr. D. Del. Feb. 17, 1998) (4% break-up fee). 26. Furthermore, there is no evidence or reason to believe that the relationship

between the Debtors and any potential purchaser would be tainted by self-dealing or manipulation. 27. Likewise, the Overbid Protections are reasonable under the circumstances. The

Overbid Protections not only compensate the Debtors for the risk that they assume in foregoing a known, willing and able purchaser for a new potential acquirer, but also ensure that there is an increase in the net proceeds received by their estates, after deducting any Break-Up Fee to be paid to the stalking horse in the event of a prevailing overbid. See, e.g., Finl News Network, 126 B.R. at 154 (requiring minimum overbid of 9.5% in excess of the original purchase price); In re Wintex, Inc., 158 B.R. 540, 543 (D. Mass. 1992) (finding that a 10% overbid increment is one example of a reasonable litmus test). 28. Accordingly, the Debtors request that the Court authorize the Debtors to offer a

Break-Up Fee and Overbid Protections in their sole discretion in connection with the Sales.

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Notice 29. Notice of this Motion has been given to the Core Group and the 2002 List as

required by the Case Management Procedures.6 In light of the nature of the relief requested, the Debtors submit that no further notice is required. No Prior Request 30. court. No prior motion for the relief requested herein has been made to this or any other

Capitalized terms used in this paragraph 29 not otherwise defined herein shall have the meanings set forth in the First Amended Notice, Case Management and Administrative Procedures filed on June 9, 2005 [Docket No. 294].

12
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WHEREFORE, the Debtors respectfully request the entry of an order, substantially in the form attached hereto as Exhibit A, (a) approving the proposed Sale Procedures, (b) authorizing the Debtors to offer a Break-Up Fee and Overbid Protections in their sole discretion in connection with the Sales and (c) granting such other and further relief as is just and proper. Dated: February 12, 2007 KIRKLAND & ELLIS LLP /s/ Ray C. Schrock Richard M. Cieri (NY RC 6062) Citigroup Center 153 East 53rd Street New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 -andDavid L. Eaton (IL 3122303) Ray C. Schrock (IL 6257005) Marc J. Carmel (IL 6272032) 200 East Randolph Drive Chicago, Illinois 60601 Telephone: (312) 861-2000 Facsimile: (312) 861-2200 -andCARSON FISCHER, P.L.C. Joseph M. Fischer (P13452) 4111 West Andover Road West - Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors

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EXHIBIT A

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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 STANDARD PROCEDURES TO BE UTILIZED IN CONNECTION WITH CERTAIN ASSET SALES Upon the motion (the Motion)2 of the above-captioned debtors (collectively, the Debtors) for the entry of an order approving standard procedures to be utilized in connection with certain asset sales [Docket No. ]; 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 pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this proceeding and this Motion in this District is proper pursuant to 28 U.S.C. 1408
1 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. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Motion.

and 1409; it appearing that notice of this Motion and the opportunity for a hearing on this 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. The Motion is granted in its entirety. The Sale Procedures as proposed in the Motion and substantially in the form of

Exhibit B to the Motion are approved. 3. The Debtors are authorized to utilize the Sale Procedures in connection with sales

(the Sales) of assets with a selling price equal to or less than $100 million as determined by the Debtors in their sole discretion. 4. The Debtors are authorized to offer a Break-Up Fee and Overbid Protections

pursuant to the Sale Procedures in connection with the Sales as determined by the Debtors in their sole discretion, after consulting with the Prepetition Agent and the Committee. 5. The Debtors are authorized to implement non-material changes to the

Sale Procedures in the context of specific transactions, as circumstances warrant, that are in the best interests of the Debtors estates, without further order of the Court. 6. Notwithstanding anything herein to the contrary or otherwise, nothing in the

Motion or this Order shall alter, modify or amend the Order Establishing Procedures for the Sale or Abandonment of De Minimis Assets [Docket No. 445]. 7. Notwithstanding anything herein to the contrary or otherwise, nothing in the

Motion or this Order shall alter, modify or amend the Final Order (I) Authorizing Debtors (A) to Obtain Post-Petition Financing Pursuant to 11 U.S.C. 105, 361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) and 364(e) and (B) to Utilize Cash Collateral Pursuant to 11 U.S.C. 363 and (II) Granting Adequate Protection to Pre-Petition Secured Parties Pursuant

to 11 U.S.C. 361, 362, 363 and 364 dated July 28, 2005 (the Final DIP Order). Any relief granted herein shall be subject to the terms and conditions of the Final DIP Order and the postpetition credit agreement referenced therein (the DIP Credit Agreement), and any and all proceeds obtained from the transactions contemplated by this Order shall be administered in accordance with the Final DIP Order and the DIP Credit Agreement. 8. The Debtors are authorized to take all actions necessary to effectuate the relief

granted pursuant to this Order in accordance with the Motion. 9. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 10. The Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

CERTIFICATE OF SERVICE I, Ray C. Schrock, an attorney, certify that on the 12th day of February, 2007, I caused to be served, by e-mail, facsimile and overnight delivery, in the manner and to the parties set forth on the attached service lists, a true and correct copy of the foregoing Debtors Motion for the Entry of an Order Approving Standard Procedures to Be Utilized in Connection with Certain Asset Sales and the Notice of Omnibus Hearing and Notice of the Motion and an Opportunity to Respond Thereto. Dated: February 12, 2007 /s/ Ray C. Schrock Ray C. Schrock

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CREDITOR NAME A Freeman Acord Inc Adrian City Hall Alice B Eaton Amalgamated Life Askounis & Borst PC Assistant Attorney General of Texas ATC Nymold Corporation Athens City Tax Collector Attorney for MDEQ Attorneys for Michigan DLEG UIA Autoliv ASP Inc Bailey & Cavalieri LLC Baker & Hostetler LLP Balch & Bingham LLP Barnes & Thornburg LLP Barnes & Thornburg LLP Bartlett Hackett Feinberg Basell USA Inc

CREDITOR NOTICE NAME John Livingston John Fabor Judith Greenspan Esq Thomas V Askounis Esq E Stuart Phillips Sherry Epstein Mike Keith Celeste Gill Asst Attorney General Roland Hwang Asst Attorney General Eric R Swanson Esq & Anthony J Nellis Esq Adam J Biehl & Yvette A Cox Wendy J Gibson & Brian A Bash Eric T Ray John T Gregg Patrick E Mears Frank F McGinn Scott Salerni

Benesch Friedlander Coplan & Aronoff LLP William E Schonberg & Stuart A Laven Jr Bernardi Ronayne & Glusac PC Rodney M. Glusac Bernstein Litowitz Berger & Grossman LLP Berry Moorman PC Berry Moorman PC Bird Svendsen Brothers Scheske & Pattison PC Borges & Associates LLC Bose McKinney & Evans LLP Bradley Arant Rose & White LLP Brendan G Best Brown Rudnick Berlack Israels LLP Bryan Clay Burr & Forman LLP Butzel Long PC Butzel Long PC Cahill Gordon & Reindel Cahill Gordon & Reindel Calhoun Di Ponio & Gaggos PLC Carlile Patchen & Murphy LLP Chambliss Bahner & Stophel PC Champaign County Collector Chris Kocinski City Of Eunice City Of Evart City Of Kitchener Finance Dept City Of Lowell City Of Marshall City Of Muskegon City Of Port Huron City Of Rialto City Of Rochester Hills City Of Salisbury City Of Westland City Of Woonsocket Ri City Treasurer City Treasurer Colbert & Winstead PC Steven Singer & John Browne Dante Benedettini Esq James Murphy Esq Eric J Scheske Wanda Borges Esq Jeannette Eisan Hinshaw Jay R Bender

EMAIL afreeman@akingump.com jlivingston@acordinc.com cityofadrian@iw.net aeaton@stblaw.com jgreenspan@amalgamatedlife.com taskounis@askborst.com stuart.phillips@oag.state.tx.us sepstein@atc-lighting-plastics.com finance@cityofathens.com gillcr@michigan.gov hwangr@michigan.gov eric.swanson@autoliv.com tony.nellis@autoliv.com Yvette.Cox@baileycavalieri.com Adam.Biehl@baileycavalieri.com wgibson@bakerlaw.com eray@balch.com john.gregg@btlaw.com pmears@btlaw.com ffm@bostonbusinesslaw.com scott.salerni@basell.com wschonberg@bfca.com slaven@bfca.com rodg@brgpc.com steve@blbglaw.com johnb@blbglaw.com dante@berrymoorman.com murph@berrymoorman.com bsbs@charter.net borgeslawfirm@aol.com jhinshaw@boselaw.com jbender@bradleyarant.com bbest@dykema.com rstark@brownrudnick.com ssmith@brownrudnick.com bryan_clay@ham.honda.com shoff@burr.com sharkey@butzel.com osborne@butzel.com wilkins@butzel.com jschaffzin@cahill.com rusadi@cahill.com kcc@cdg-law.com lxf@cpmlaw.com bbailey@cbslawfirm.com bneal@co.champaign.il.us christopher.j.kocinski@bofasecurities.com Eunicela@hotmail.com evartmanager@sbcglobal.net finance@city.kitchener.on.ca MYoung@ci.lowell.ma.us Mevans@cityofmarshall.com roberto.robles@postman.org cphdp@porthuron.org treasurer@rialtoca.gov treasury@rochesterhills.org finwebreq@salisburync.gov finance@ci.westland.mi.us webmaster@woonsocketri.org THovarter@cityofmarshall.com Ncowdrey@corunna-mi.gov amalone@colwinlaw.com

Robert Stark & Steven Smith Shannon E Hoff Daniel N Sharkey & Paula A Osborne Matthew E Wilkins Esq Jonathan A Schaffzin Robert Usadi Kevin C Calhoun Leon Friedberg Bruce C Bailey Barb Neal The Mator at City Hall Roger Elkins City Manager Pauline Houston Lowell Regional Wastewater Maurice S Evans City Manager Bob Robles Treasurer's Office City Treasurer Kurt A Dawson City Assesor Treasurer Business License Div Pretreatment Division Tracy Horvarter Amy Wood Malone

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CREDITOR NAME Cole Schotz Meisel Forman & Leonard PA Constellation NewEnergy Inc Coolidge Wall Womsley & Lombard Crowell & Moring LLP Crowell & Moring LLP Cummings McClorey Davis & Acho PLC DaimlerChrysler DaimlerChrysler DaimlerChrysler Corporation Daniella Saltz Danielle Kemp Danning Gill Diamond & Kollitz LLP David H Freedman David Heller David Youngman Dennis C Roberts PLLC Dickinson Wright PLLC Dickinson Wright PLLC Dilworth Paxson LLP Dow Chemical Company Dow Chemical Company Duane Morris LLP DuPont Dworken & Bernstein Co LPA Dykema Gossett Rooks Pitts PLLC Earle I Erman Eastman & Smith Ltd Elias Meginnes Riffle & Seghetti PC Ellwood Group Inc Erin M Casey Erman Teicher Miller Zucker & Freedman PC Foley & Lardner LLP Frank Gorman Gail Perry Garan Lucow Miller PC Garan Lucow Miller PC Ge Capital GE Polymerland George E Schulman Gold Lange & Majoros PC Gold Lange & Majoros PC Hal Novikoff Handwork & Kerscher LLP Heather Sullivan Hewlett Packard Co Hewlett Packard Co Hunton & Williams LLP Hyman Lippitt PC InterChez Logistics Systems Inc International Union UAW Jacob & Weingarten PC Jaffe Raitt Heuer & Weiss PC Jaffe Raitt Heuer & Weiss PC James A Plemmons James C Edwards Jenner & Block LLP Jim Clough Joe LaFleur Joe Saad John A Harris

CREDITOR NOTICE NAME Stuart Komrower & Mark Politan Catherine Barron Esq Steven M Wachstein Esq Joseph L Meadows Mark D Plevin K Kinsey

Kim R Kolb Esq

George E Shulman

Dennis C Roberts Dawn R Copley Esq Michael C Hammer Anne Marie Kelley & Scott Freedman Kathleen Maxwell Lee H Sjoberg Brian W Bisignani Esq Bruce Tobiansky Howard S Rabb Esq Peter J Schmidt Matthew D Harper Brian J Meginnes & Janaki Nair Susan A Apel Esq

EMAIL skomrower@coleschotz.com mpolitan@coleschotz.com cathy.barron@constellation.com wachstein@coollaw.com jmeadows@crowell.com mplevin@crowell.com kkinsey@cmda-law.com kpm3@daimlerchrysler.com krk4@daimlerchrysler.com krk4@dcx.com dsaltz@ford.com danielle.kemp@lw.com ges@dgdk.com dfreedman@ermanteicher.com david.heller@lw.com David.Youngman@ColAik.com dcroberts@coxinet.net dcopley@dickinsonwright.com mchammer2@dickinsonwright.com sfreedman@dilworthlaw.com klmaxwell@dow.com LHSjoberg@dow.com bisignani@duanemorris.com bruce.d.tobiansky@usa.dupont.com abollas@dworkenlaw.com pschmidt@dykema.com eerman@ermanteicher.com mdharper@eastmansmith.com bmeginnes@emrslaw.com jnair@emrslaw.com sapel@elwd.com ecasey@stblaw.com jteicher@ermanteicher.com jo'neill@foley.com fgorman@honigman.com perry.gail@pbgc.com kblair@garanlucow.com rvozza@garanlucow.com rail.sales@ge.com valerie.venable@ge.com ges@dgdk.com emajoros@glmpc.com sgold@glmpc.com dlehl@glmpc.com HSNovikoff@wlrk.com kerscher@aol.com hsullivan@unumprovident.com anne.kennelly@hp.com ken.higman@hp.com jburns@hunton.com bokeefe@hymanlippitt.com mchesnes@interchez.com nganatra@uaw.net rob@jacobweingarten.com aschehr@jaffelaw.com lrochkind@jaffelaw.com jplemmons@dickinson-wright.com jamesedwardslaw@peoplepc.com ppossinger@jenner.com jrc8@daimlerchrysler.com joe_lafleur@ham.honda.com js284477@bloomberg.net jharris@quarles.com

Julie Teicher & Dianna Ruhlandt Judy A Oneill Esq

Kellie M Blair Esq Robert Vozza Esq Val Venable Elias T Majoros Stuart A Gold & Donna J Lehl Jeffrey M Kerscher Anne Marie Kennelly Ken Higman John D Burns Brian D Okeefe Mark Chesnes Niraj R Ganatra Robert K Siegel Alicia S Schehr Louis P Rochkind

Paul V Possinger & Peter A Siddiqui

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NAME John Green John J Dawson John S Sawyer Josef Athanas Joseph Delehant Esq Joseph M Fischer Esq K Crumbo K Schultz Kelley Drye & Warren LLP

CREDITOR NOTICE NAME

James S Carr Denver Edwards

EMAIL greenj@millercanfield.com jdawson@quarles.com jss@sawyerglancy.com josef.athanas@lw.com joseph.delehant@sylvania.com jfischer@carsonfischer.com kcrumbo@kraftscpas.com kschultz@tmmna.com jcarr@kelleydrye.com robert.bassel@kkue.com kll2@krwlaw.com kim.stagg@nmm.nissan-usa.com Kimberly.Rodriguez@gt.com tah@kompc.com patrick.healy@lawdeb.com daniel.fisher@lawdeb.com stzouvelekas@lwtm.com lwalzer@angelogordon.com veronica.fennie@lfr.com dallas.bankruptcy@publicans.com houston_bankruptcy@publicans.com tim@litespeedpartners.com metkin@lowenstein.com ilevee@lowenstein.com vdagostino@lowenstein.com mcrosby@akingump.com webmaster@misd.net mcarmel@kirkland.com mark.w.fischer@gm.com dhoopes@mayocrowe.com lrosenbloom@mwe.com dchristian@mwe.com jdejonker@mwe.com JRG@msblaw.com palucey@michaelbest.com mpaslay@wallerlaw.com mstamer@akingump.com treasReg@michigan.gov dmgbeachlaw@hawaii.rr.com Michael.Orourke@colaik.com mike.paslay@wallerlaw.com pborenstein@milesstockbridge.com fusco@millercanfield.com brucemiller@millercohen.com sarbt@millerjohnson.com info@electionsquebec.qc.ca mied@dor.mo.gov jmorganroth@morganrothlaw.com maire@st-zotique.com rrios@munsch.com jbruinsma@mnds-pllc.com kschneider@niccausa.com Nick.Shah@cit.com nina.m.rosete@bofasecurities.com pbaylor@nutter.com rcolasuonno@orlaw.com ssoll@oshr.com phoffman@bofasecurities.com ksummers@psedlaw.com

Kemp Klein Umphrey Endelman & May PC Robert N Bassel Esq Kerr Russell & Weber PLC Kevin L Larin & James E DeLine Kim Stagg Kimberly Davis Rodriguez Paul Magy Terrance Hiller Jr & Matthew Kupelian Ormond & Magy PC Thompson Law Debenture Trust Company of New York Patrick Healy & Daniel Fisher Leatherwood Walker Todd & Mann PC Seann Gray Tzouvelekas Leigh Walzer Levine Fricke Inc Linebarger Goggan Blair & Sampson LLP Linebarger Goggan Blair & Sampson LLP Litespeed Partners Lowenstein Sandler PC Lowenstein Sandler PC M Crosby Macomb Intermediate School Marc J Carmel Mark Fischer Mayo Crowe LLC Elizabeth Weller John P Dillman Timothy Chen Michael S Etkin & Ira M Levee Vincent A DAgostino Esq

David S Hoopes

McDermott Will & Emery LLP McShane & Bowie PLC Michael Best & Friedrich LLP Michael R Paslay Michael Stamer Michigan Department Of Treasury Mighty Enterprises Inc Mike O'Rourke Mike Paslay Miles & Stockbridge PC Miller Canfield Paddock & Stone PLC Miller Cohen Miller Johnson Ministry Of Finance Corp Tax Branch Missouri Dept Of Revenue Morganroth & Morganroth PLLC Municipalite Du Village De Munsch Hardt Kopf & Harr PC Myers Nelson Dillon & Shierk PLLC NICCA USA Inc Nick Shah Nina Rosete Nutter McClennen & Fish LLP O Reilly Rancilio PC

Lewis Rosenbloom John R Grant Paul A Lucey

David M Gurewitz

Patricia A Borenstein Esq Timothy A Fusco Esq Bruce A Miller Thomas P Sarb & Robert D Wolford 15663507 Jeffrey Morganroth Lacolle Randall A Rios James R Bruinsma Karen Schneider

Peter Nils Baylor Esq Ralph Colasuonno & Craig S Schoenherr Sr

Otterbourg Steindler Houston & Rosen PC Steven B Soll Esq Paul Hoffman Pear Sperling Eggan & Daniels PC Kevin N Summers

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NAME Pension Benefit Guaranty Corporation Pension Benefit Guaranty Corporation Pepe & Hazard LLP Pepper Hamilton LLP Pepper Hamilton LLP Pepper Hamilton LLP Peter Schmidt Peter V Pantaleo Phh Canada Inc Philip Dublin Phoenix Contracting Company Pillsbury Winthrop Shaw Pittman LLP Pillsbury Winthrop Shaw Pittman LLP Pillsbury Winthrop Shaw Pittman LLP Pillsbury Winthrop Shaw Pittman LLP Pitts Hay & Hugenschmidt PA Plunkett & Cooney PC Quadrangle Group LLC Quadrangle Group LLC R Aurand R J Sidman Ralph E McDowell Ravich Meyer Kirkman McGrath & Nauman PA Ray C Schrock Rex D Rainach Rhoades McKee Rick Feinstein Ricoh Canada Inc Riker Danzig Scherer Hyland & Perretti LLP RLI Insurance Company Robert J Diehl Jr Robert Weiss Ronald A Leggett Ronald R Rose Sarah Eagle SC DHEC Sean P Corcoran Seiller Waterman LLC Seyburn Kahn Ginn Bess & Serlin PC Sheehan Phinney Bass & Green PA Sheryl Toby Shumaker Loop & Kendrick LLP Sidley Austin Brown & Wood LLP Sills Cummis Epstein & Gross PC Spengler Nathanson PLL St Paul Travelers Stark County Treasurer State Of Michigan

CREDITOR NOTICE NAME Sara Eagle & Gail Perry Sara Eagle & Gail Perry Charles J Filardi Jr Francis J Lawall & Bonnie MacDougal Kistler J Gregg Miller & Linda J Casey Kenneth H Zucker

Tricia Sommers Craig A Barbarosh Patrick J Potter Esq Rick Antonoff Esq Lara Sheikh Esq Josh J May Esq William B Freeman Esq Robert P Pitts Esq Douglas C Bernstein Andrew Herenstein Patrick Bartels

EMAIL eagle.sara@pbgc.gov efile@pbgc.gov cfilardi@pepehazard.com lawallf@pepperlaw.com kistlerb@pepperlaw.com millerj@pepperlaw.com zuckerk@pepperlaw.com pschmidt@dykema.com ppantaleo@stblaw.com phhmail@phhpc.com pdublin@akingump.com triciawinkle@hotmail.com craig.barbarosh@pillsburylaw.com patrick.potter@pillsburylaw.com rick.antonoff@pillsburylaw.com bill.freeman@pillsburylaw.com pittsrm@charter.net dbernstein@plunkettcooney.com andrew.herenstein@quadranglegroup.com patrick.bartels@quadranglegroup.com raurand@e-bbk.com rjsidman@vssp.com rmcdowell@bodmanllp.com

State Of Michigan State Of Michigan Stephen E Spence Stephen S LaPlante Steven A Siman PC

mfmcgrath@ravichmeyer.com rschrock@kirkland.com A Professional Law Corporation rainach@msn.com Dan E Bylenga Jr dbylenga@rhoadesmckee.com rick.feinstein@ubs.com legal@ricoh.ca Dennis J OGrady Joseph L Schwartz & Curtis M jschwartz@riker.com Plaza cplaza@riker.com Roy Die Roy_Die@rlicorp.com rdiehl@bodmanllp.com rweiss@honigman.com Collector Of Revenue leggettr@stlouiscity.com rrose@dykema.com eagle.sarah@pbgc.com whitehme@dhec.sc.gov Evander Whitehead chandlls@dhec.sc.gov sean.p.corcoran@delphi.com Richard M Rubenstein rubenstein@derbycitylaw.com Leslie Stein lstein@seyburn.com Bruce Harwood bharwood@sheehan.com stoby@dykema.com David H Conaway dconaway@slk-law.com bguzina@sidley.com Bojan Guzina & Brian J Lohan blohan@sidley.com asherman@sillscummis.com Andrew H Sherman & Boris I Mankovetskiy bmankovetskiy@sillscummis.com Michael W Bragg Esq MBragg@SpenglerNathanson.com Vatana Rose vrosa@stp.com PA Powers PAPowers@co.stark.oh.us Michigan Dept Of Environmental Quality Environmental Assistance Div deq-ead-env-assist@michigan.gov Michigan Dept Of Treasury Collection Div Office of Financial Mgmt Cashiers Office treasReg@michigan.gov Michigan Unemployment Insurance Agency shuttkimberlyj@michigan.gov US Trustee steve.e.spence@usdoj.gov laplante@millercanfield.com Steven A Siman sas@simanlaw.net

Michael F McGrath Esq

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NAME Stevens & Lee PC

Stradley Ronon Stevens & Young LLP T Pryce Tax Administrator Textron Inc The Bank of New York Thomas Radom Treasurer Of State Tricia Sherick Tyco Capital Inc United Rentals Of Canada Inc United Steelworkers Varnum Riddering Schmidt & Howlett LLP Ville De Farnham Vinson & Elkins LLP Von Briesen & Roper SC Voridian Canada Company Warner Norcross & Judd LLP Warner Stevens LLP Wickes Manufacturing Co William C Andrews William G Diehl William J Byrne Willkie Farr & Gallagher LLP Wilmer Cutler Pickering Hale and Dorr LLP WL Ross & Co Womble Carlyle Sandridge & Rice PLLC Zeichner Ellman & Krause LLP

CREDITOR NOTICE NAME EMAIL Leonard P Goldberger Esq & John C Kilgannon Esq jck@stevenslee.com ppatterson@stradley.com mdorval@stradley.com jtrotter@stradley.com Paul Patterson Esq tpryce@ford.com Jim Cambio jcambio@tax.ri.gov afriedman@textron.com Gary S Bush gbush@bankofny.com radom@butzel.com Joseph T. Deters treasurer@tos.state.oh.us tsherick@honigman.com Frank.Chaffiotte@cit.com e-rental@ur.com David R Jury djury@usw.org Mary Kay Shaver Service de la Tresorerie John E West Randall Crocker & Rebecca Simoni Michael G Cruse Michael D Warner Esq co Stacy Fox of C&A mkshaver@varnumlaw.com msaintdenis@ville.farnham.qc.ca jwest@velaw.com rcrocker@vonbriesen.com blanderson@eastman.com mcruse@wnj.com mwarner@warnerstevens.com stacy.fox@colaik.com kandrews@e-bbk.com wdiehl@e-bbk.com bbyrne@e-bbk.com alipkin@willkie.com rspigel@willkie.com andrew.goldman@wilmerhale.com pmachir@wlross.com RWhelehan@wcsr.com pjanovsky@zeklaw.com

Alan Lipkin & Roger Spigel Andrew N Goldman Esq Patrick Machir Rory D Whelehan Esq Peter Janovsky & Stuart Krause

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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(no valid e-mail) CREDITOR NAME American General Finance Attorney General of MI Barclays Bank PLC Bayer Material Sciences BNY Midwest Trust Company BNY Midwest Trust Company Brown Corporation City Of Albemarle City Of Battle Creek City Of Longview City Of Sterling Heights Clark Hill PLC Colbond Inc Contrarian Capital Management LLC Dayton Bag & Burlap Co El Paso Natural Gas Company Enerflex Solutions LLC Exxon Chemicals Intertex World Resources Trintex Corp Kilpatrick & Associates PC Lake Erie Products Lambert Leser Isackson Cook & Giunta PC McLane Graf Raulerson & Middleton PA Meridian Magnesium Miller Canfield Paddock & Stone PLC Missouri Dept of Revenue Office of Finance of Los Angeles Office of the US Attorney Paul Weiss Rifkind Wharton & Garrison LLP Pension Benefit Guaranty Corporation Pine River Plastics Inc Plastech Progressive Moulded Products Revenue Canada Riverfront Plastic Products Inc Select Industries Corp South Carolina Dept Of Revenue Southco Standard Federal Bank Stark Reagan PC State Of Michigan Teknor Financial Corporation TG North America Third Avenue Trust Town Of Lincoln Finance Office UBS Investment Bank Unique Fabricating Inc Valiant Tool & Mold Inc Vericorr Packaging fka CorrFlex Packaging Viacom Inc CREDITOR NOTICE NAME Matthew H Rick Mr David Bullock Linda Vesci Mary Callahan Roxane Ellwalleger Mark Ferderber Utilities Department Income Tax Division Water Utilities James P Bulhinger City Treasurer E Todd Sable Don Brown Seth Lax Jeff Rutter Michael J McGinnis Todd McCallum Law Dept Bill Weeks Richardo Kilpatrick Leonora Baughman Lilia Roman Susan M Cook Joseph A Foster Jose J Bartolomei Steven A Ginther Bankruptcy Auditor Julia Pidgeon Asst US Atty Stephen J Shimshak & Netanella T Zahavi Sara Eagle & Gail Perry Barb Krzywiecki Kelvin W Scott Esq Dan Thiffault George Tabry Christine Brown Sales & Use Tax Division Lorraine Zinar Holly Matthews Joseph A Ahern Linda King Bruce B Galletly Raymond Soucie W James Hall Rick Feinstein Tom Tekieke General Fax Adriana Avila JoAnn Haller FAX 217-356-5469 517-373-2060 212-412-1706 412-777-4736 312-827-8542 312-827-8542 616-527-3385 704-984-9445 269-966-3629 903-237-1004 586-276-4077 313-965-8252 828-665-5005 203-629-1977 937-258-0029 713-420-5669 248-430-0134 281-588-4606 770-258-3901 248-377-0800 630-595-0336 989-894-2232 603-625-5650 517-663-2714 313-496-8452 573-751-7232 213-368-7076 313-226-3800 212-757-3990 202-326-4112 810-329-9388 313-792-2729 905-760-3371 902-432-6287 734-281-4483 937-233-7640 803-898-5147 610-361-6082 248-816-4376 248-641-9921 517-241-8077 401-725-5160 248-280-2110 212-735-0003 401-333-3648 203-719-1090 248-853-8422 519-944-7748 586-939-4216 412-642-5614

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NOTICE NAME Rob Morgan Michael S Stamer Philip C Dublin

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Mike Keith Charlie Burrill Harry W Miller III Jay Truty Ms Amy Evans Thomas B Radom Attn Receiver General International Tax Service

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Income Tax Division Canton Income Tax Dept Wastewater Labroratory

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ADDRESS1 1062 S 4th Ave 590 Madison Ave PO Box 16253 PO Box 849 1609 Biddle Ave 709 Taylor St 3 1st National Plaza Ste 3300 Law Dept 100 Bloomfield Hills Pkwy Ste 100 1 5 Notre Ave 2204 Walkley Rd PO Box 8040 104 3rd St NW PO Box 9951 484 Middle Rd PO Box 818 200 South Main St 303 W Commonwealth Ave 711 Pennington Ave

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City of Kalamazoo City Of Los Angeles City Of Phoenix City Of Roxboro City Of St Joseph City Of Williamston City Treasurer Collector Of Revenue Collins & Aikman Corp Legal Dept Columbia Center 10th Fl 321 Settlers Rd 4500 Dorr St 885 Third Ave Ste 3300 7000 N Green Bay Ave Kellie Schone Jayson Macyda DuPont Legal D 7156 400 Renaissance Center One SeaGate 24th Fl 4611 North 32nd St 1084 Doris Rd 47690 E Anchor Ct PO Box 105499 PO Box 890691

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Corning Inc

Nancy Holtby Esq

Cox Hodgman & Giarmarco PC Cunningham Dalman PC Dana Corp Davidson Kempner Capital Management LLC Dennis Reis LLC

William H Horton Esq & Sean M Walsh Esq Jeffrey K Helder Lisa A Wurster Esq

1415 N Harrison St Kalamazoo File 54563 Los Angeles Phoenix Roxboro St Joseph Williamston Port Huron St Charles Ste 900 Southfield Riverfront Plaza HQ E2 10 Corning 101 W Big Beaver Rd Troy PO Box 1767 Holland PO Box 1000 Toledo

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Dold Spath McKelvie & DeLuca PC DuPont Dykema Gossett PLLC Eastman & Smith Ltd ER Wagner Manufacturing Fisher Automotive Systems Fisher America Inc Freudenberg Nok Inc

William Stiefel

Ga Dept Of Revenue Gaston County

Director's Office for Taxpayer Services Division

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CREDITOR NAME Ge Capital Ge Capital Ge Capital Ge Capital Comm Serv Astro Dye General Motors Corp Harford County Revenue Heritage Environmental Svcs Inc Hicks Casey & Foster PC PO Box 300 Attn Lease Administration TN 37203

Linda L Bentley

Mr Ken Price Samuel D Hicks Esq

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CITY Atlanta Pittsburgh Pittsburgh Charlotte Detroit Bel Air Indianapolis Marietta

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Highwoods Forsyth Lp

co Highwoods Properties Llc

co Highwoods Properties Llc co Rudolph libbe Properties

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Canada

Highwoods Forsyth Lp Hnk Michigan Properties Indiana Department Of Revenue Indiana Dept Of Revenue Indiana Steel & Wire Co Industrial Development Board Industrial Leasing Company Industrial Truck Sales & Svc Inmet Division of Multimatic Internal Revenue Service Invista ISP Elastomer

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Tim Gorman

Attn Lease Administration 7255 Crossleigh Court Ste 108 100 N Senate Ave PO Box 7218 1 E 4th St PO Box 4660 PO Box 1803 PO Box 1807 35 West Milmot St Box 330500 Stop 15 601 S LA Salle St Ste 310 PO Box 4346

NC OH IN IN OH AL MI NC ON MI IL TX

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Howard S Sher

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Laura Kelly

777 Somerset Pl 108 W Scott St 2700 Patterson Ave 3745 C Us Hwy 80 W

MI MI MI AL

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Janis N Acosta Esq

Lear Corp Lear Corp Manpower Meridian Park

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World Headquarters 21557 Telegraph Rd 30800 Northwestern Hwy 2707 Meridian Dr

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Michigan Dept of Treasury Mills & Stockbridge PC Ministre Du Revenu Du Quebec Municipality Of Port Hope North Loop Partners Ltd Nossiff & Giampa PC Oakland County Corporation Counsel

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Oklahoma County Treasurer Oneida County SCU PolyOne Corp Prestige Property Tax Special Princeton Properties

Asst District Attorney 800 Park Ave 4th Fl 33587 Walker Rd 1025 King St East 678 Princeton Blvd Legal Dept Church St Station

Oklahoma City Utica Avon Lake Cambridge Lowell 10,000 Midatlantic Dr PO Box 6529 Mt Laurel New York

OK NY OH ON MA NJ NY

73102 13501 44012 N3H 3P5 01851 08054 10249

Canada

QAD Inc Qrs 14 Paying Agent

Jason Pickering

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NAME Qrs 14 Paying Agent Inc Railroad Drive Lp Receivable Management Services PO Box 5126

CREDITOR NOTICE NAME

ADDRESS2

COUNTRY

Phyllis A Hayes

ADDRESS1 50 Rockefeller Lobby 2 100 Vesper Executive Pk 9690 Deereco Rd Ste 200

CITY New York Tyngsboro Timonium

STATE NY MA MD

ZIP 10020-1605 01879-2710 21093

Receiver General For Canada Receiver General For Canada Receiver General for Canada Receiver General For Canada Revenue Canada Securities and Exchange Commission Securities and Exchange Commission 875 Heron Rd

Canada Customs & Rev Agency Technology Ctr 875 Heron Rd Industry Canada Als Financial Postal Station D Box 2330 700 Leigh Capreol 11 Station St Ottawa Technology Centre Angela Dodd 175 W Jackson Blvd Ste 900 Midwest Regional Office 175 W Jackson Blvd Ste 900

Ottawa Ottawa Dorval Belleville Ottawa Chicago Chicago

ON ON QC ON ON IL IL

K1A 1B1 K1P 6K1 H4Y 1G7 K8N 2S3 K1A 9Z9 60604 60604

Canada Canada Canada Canada Canada

Brian Green Peter Pantaleo Erin Casey & Alice Eaton

Shapero & Green LLC Simpson Thacher & Bartlett LLP State Of Alabama State Of Michigan State Of Michigan State Of Michigan State Of Michigan State of Michigan PO Box 30744

Dept Of Commerce & Nat Res Matthew Rick Asst Attorney General State Of Michigan Mc State Secondary Complex

Signature Square II Ste 220 425 Lexington Ave Department Of Revenue PO Box 30004 PO Box 30754 Dept 77833 7150 Harris Dr PO Box 30015 430 W Allegan St

25101 Chagrin Blvd Cleveland New York 50 N Ripley St Montgomery Lansing Lansing Detroit Lansing Lansing

OH NY AL MI MI MI MI MI

44122 10017-3954 36104 48909 48909 48277-0833 48909 48918-0001

Jennifer Nelles US Trustee

First Plaza County Of Fresno

PO Box 2228

Canada 425 5th Ave N

Jim Leyden TN Attorney Generals Office Of Ingersoll Steven C Bordenkircher Esq

Canada PO Box 67

Michael F Geiger Esq

Farmville Downtown Partnership

PO Box 100

Canada

Fsia Inc

Randy Lueth

Office of Child Support 211 W Fort St Ste 700 24901 Northwestern Hwy 302 1985 Blvd Se PO Box 1192 21 Albert St 155 S Limerick Rd Cordell Hall 130 Oxford St 2nd Fl 1144 E Market St 126 North Pearl St 8155 TB Blvd 1306 E Triumph Dr 356 Main St 3802 S Main 30 King St East PO Box 520 PO Box 67 315 North Main St 200 E Big Beaver PO Box 33525 7201 W Friendly Ave 942 Brooks Ave 211 W Fort St Ste 2001 3000 University Dr 12341 E 9 Mile Rd 10 Livingston Pl 2nd Fl 205 Millersburg Rd

Lansing Detroit Southfield Hickory Fresno Trenton Limerick Nashville Ingersoll Akron Pageland Memphis Urbana Farmington Farmville Gananoque Old Fort Pageland Troy Troy Detroit Greensboro Holland

MI MI MI NC CA ON PA TN ON OH SC TN IL NH NC ON NC SC NC MI MI NC MI

48909-8244 48226 48075 28602 937151192 K8V 5R1 19468 37247 N5C 2V5 44316-0001 29728 38125 61802 03835 27828-1621 K7G 2T6 28762 29728 27371 48083 48232 27410-6237 49423

State of Michigan Central Functions Unit Stephen E Spence Summit Property Management Inc Tate Boulevard I Llc Tax Collector Tcs Realty Ltd Teleflex Inc Tennessee Department of Revenue The Corporation Of The Town The Goodyear Tire & Rubber Co The Town Of Pageland Thomas & Betts Corp Tom Heck Truck Service Town Of Farmington Town Of Farmville Town Of Gananoque Town Of Old Fort Town Of Pageland Town Of Troy Tr Associates Treasurer City Of Detroit Unifi Inc Uniform Color Co United States Attorney for the Eastern District of Michigan Valeo Inc Vari Form Inc Vespera Lowell Llc Village Of Holmesville

Attn Civil Division Jerry Dittrich Terry Nardone Blue Point Capital Bpv Lowell LLC

PO Box 113

Detroit Auburn Hills Warren Greenwichn Holmesville

MI MI MI CT OH

48226 48326-2356 48089 06830 44633

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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CREDITOR NAME Village Of Rantoul One Village Center Dr MI 48111

CREDITOR NOTICE NAME

ADDRESS1 333 S Tanner

ADDRESS2

STATE IL

ZIP 61866

COUNTRY

Visteon Climate Control

CITY Rantoul Van Buren Ste PO RFQ Office Township

W9 Lws Real Estate Limited Wachtell Lipton Rosen & Katz Wellington Green LLC Young & Susser PC

co Lincoln Harris Llc Hal Novikoff

Steven Susser P52940

10101 Claude Freeman Dr Ste 200 N 51 W 52nd St 31100 Telegraph Rd Ste 200 26200 American Dr Ste 305

Charlotte New York Bingham Farms Southfield

NC NY MI MI

28262-2337 10019 48025 48034

In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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EXHIBIT B

SALE PROCEDURES These Sales Procedures set forth the process by which Collins & Aikman Corporation and its affiliated debtor entities (collectively, the Seller) are authorized to conduct certain asset sales contemplated by that certain Customer Agreement approved by the United States Bankruptcy Court for the Eastern District of Michigan (the Bankruptcy Court) on a final basis on January 17, 2007 [Docket No. 3918]. These Sales Procedures were approved by the Bankruptcy Court on __________, 2007, pursuant to the Order Approving Standard Procedures to Be Utilized in Connection with Certain Asset Sales [Docket No. ___]. General Sale Process Set forth below is the general process to be employed by the Seller with respect to the prospective sale (the Sale) of the following item(s) of real or personal property of the Seller: _____________ (collectively, the Assets). (a) (b) (c) The Seller shall market the Assets to those parties reasonably known by the Seller to have a potential interest in purchasing the Assets. Only Qualified Bids (as defined below) shall be considered by the Seller. After reviewing the Qualified Bids received, the Seller, after consulting with the agent for the Sellers senior, secured prepetition lenders (the Prepetition Agent) and the official committee of unsecured creditors (the Committee), shall designate the Qualified Bidder submitting the highest or otherwise best Qualified Bid as the stalking horse bidder (the Stalking Horse). The Seller shall then file a notice with the Bankruptcy Court, the contents of which shall include: (i) the identity of the proposed Stalking Horse; (ii) the proposed terms of the bid submitted by the Stalking Horse (in the form of a binding term sheet or executed asset purchase agreement); (iii) any proposed Break-Up Fee (as defined below) and/or Overbid Protection (as defined below); (iv) the Sellers rationale establishing why the Break-Up Fee is an appropriate administrative expense of the Sellers estates; and (v) the date and location of any auction to be conducted by the Seller (the Sale Notice). The Seller shall serve a copy of the Sale Notice upon (i) the Primary Service List1 and (ii) all parties reasonably known by the Seller to have a potential interest in purchasing the Assets (collectively, the Notice Parties). If no written objections are filed by the Notice Parties within ten days of the date of the Sale Notice, the Stalking Horse and any proposed Break-Up Fee and/or Overbid Protection, as applicable, shall be approved and the Seller shall file a certificate of no objection with a proposed order reflecting the same. The

(d)

(e)

(f)

Primary Service List shall have the meaning set forth in the First Amended Notice, Case Management and Administrative Procedures filed on June 9, 2005 [Docket No. 294].

K&E 11611083.7

Break-Up Fee, if any, shall constitute an allowed administrative expense pursuant to section 503(b)(1) of the Bankruptcy Code and shall be paid by the Seller in accordance with the terms of the proposed Stalking Horse bid set forth in the Sale Notice. (g) If a written objection is received from a Notice Party within such ten-day period that cannot be resolved, the Stalking Horse, the Break-Up Fee and/or Overbid Protection, as applicable, shall only be approved upon withdrawal of such written objection or further order of the Bankruptcy Court. If the Seller receives more than one Qualified Bid, the Seller will conduct an auction (the Auction). At the conclusion of the Auction or promptly following the Bid Deadline if only one Qualified Bid is received by the Seller, the Seller shall determine, after consulting with the Prepetition Agent and the Committee, the party (the Successful Bidder) submitting the highest or otherwise best bid (the Successful Bid). In determining the Successful Bid, the Seller shall consider, among other things, the total consideration to be received by its estates as well as other financial and contractual terms relevant to the Sale, including those factors affecting speed and certainty of consummating the Sale. The Seller shall then file a motion with the Bankruptcy Court seeking approval of the Successful Bid to be heard at the omnibus hearing that is at least five days after the filing of such motion (the Sale Hearing). Upon failure to consummate the Sale because of a breach or failure on the part of the Successful Bidder after an order entered at the Sale Hearing, the Seller shall be permitted to select, after consulting with the Prepetition Agent and the Committee, the next highest or otherwise best bid to be the Successful Bid and to consummate such transaction without further order of the Bankruptcy Court. Participation Requirements Unless otherwise ordered by the Bankruptcy Court for cause shown, to participate in the sale process, each person (a Potential Bidder) must deliver (unless previously delivered) to the Seller: (a) (b) an executed confidentiality agreement in form and substance satisfactory to the Seller; current audited financial statements or other financial information of the Potential Bidder, or, if the Potential Bidder is an entity formed for the purpose of acquiring the Assets, current audited financial statements or other financial information of the equity holder(s) of the Potential Bidder, or such other form of financial disclosure acceptable to the Seller, demonstrating such 2
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(h) (i)

(j)

(k)

(l)

Potential Bidders ability to close the proposed transaction and to provide adequate assurance of future performance to counterparties to any executory contracts and unexpired leases to be assumed and assigned; and (c) a preliminary (non-binding) proposal stating (i) the Assets sought to be acquired, (ii) the purchase price range, (iii) the structure and financing of the transaction (including the amount of equity to be committed and sources of financing), (iv) any additional conditions to closing that it may wish to impose and (v) the nature and extent of additional due diligence it may wish to conduct.

A Qualified Bidder is a Potential Bidder that delivers the documents described in subparagraphs (a), (b) and (c) above and that the Seller determines, after consulting with the Prepetition Agent and the Committee, is reasonably likely (based on the availability of financing, experience and other considerations) to submit a bona fide offer and to be able to consummate the Sale if selected as the Successful Bidder. Within two business days after a Potential Bidder delivers all of the materials required by subparagraphs (a), (b) and (c) above, the Seller shall determine, after consulting with the Prepetition Agent and the Committee, and shall notify the Potential Bidder in writing, whether the Potential Bidder is a Qualified Bidder. At the same time that the Seller notifies the Potential Bidder that it is a Qualified Bidder, the Seller may allow the Qualified Bidder to conduct due diligence with respect to the Assets in accordance with these Sale Procedures. Due Diligence The Seller may afford each Qualified Bidder due diligence access to the Assets. The Seller designates ____________ to coordinate all reasonable requests for additional information and due diligence access from such bidders. The Seller shall not be obligated to furnish any due diligence information after the Bid Deadline (as defined herein). Neither the Seller nor any of its affiliates (or any of their respective representatives) are obligated to furnish any information relating to the Assets to any person except to a Qualified Bidder. Bid Requirements All bids must include the following documents (the Required Bid Documents): (a) a letter stating that the bidders offer is irrevocable until the earlier of (i) two business days after the Assets have been disposed of pursuant to these Sale Procedures and (ii) 60 days after the Sale Hearing; a binding term sheet (the Term Sheet) or an executed copy of an asset purchase agreement (the Asset Purchase Agreement) for the purchase of the Assets as is, where is (as further described below) acceptable in form to the Seller; written evidence satisfactory to the Seller in its sole discretion of a commitment for financing or other evidence of ability to consummate the proposed transaction;

(b)

(c)

3
K&E 11611083.7

(d)

financial and other information setting forth adequate assurance of future performance under section 365 of the Bankruptcy Code in a form requested by the Seller to allow the Seller to serve such information within one business day after such receipt on counterparties to any executory contracts and unexpired leases being assigned in connection with the proposed transaction that have requested, in writing, such information; a good faith cash deposit (the Good Faith Deposit) in the form of a bank or certified check (or other form acceptable to the Seller in its sole discretion) payable to the order of ____________ (or such other party as the Seller may determine to hold such funds in escrow) in an amount equal to at least 5% of the value of such bid; and a written statement that the bid is not conditioned on (i) obtaining financing or other financing contingencies or (ii) the outcome of unperformed due diligence by the bidder or any other due diligence contingencies.

(e)

(f)

A bid received from a Qualified Bidder that includes all of the Required Bid Documents and otherwise meets all of the above requirements is a Qualified Bid. As Is, Where Is The Sale of the Assets shall be on an as is, where is basis and without representations or warranties of any kind, nature or description by the Seller, its agents or its estates except to the extent set forth in the Term Sheet or the Asset Purchase Agreement of the Successful Bidder as accepted by the Seller. Except as otherwise provided in such Term Sheet or Asset Purchase Agreement, all of the Sellers right, title and interest in and to the Assets shall be sold free and clear of all pledges, liens, security interests, encumbrances, claims, charges, options and interests thereon and there against (collectively, the Liens) in accordance with section 363 of the Bankruptcy Code, with such Liens to attach to the net proceeds of the Sale in the same validity, extent and priority as immediately prior to the transaction, subject to any rights, claims and defenses of the Seller and other parties in interest. Each bidder shall be deemed to acknowledge and represent that: (a) it has had an opportunity to inspect and examine the Assets and to conduct any and all due diligence regarding the Assets prior to making its offer; (b) it has relied solely upon its own independent review, investigation or inspection of any documents or assets in making its bid; and (c) it did not rely upon any written or oral statements, representations, promises, warranties or guaranties whatsoever, whether express, implied, by operation of law or otherwise, regarding the Assets, or the completeness of any information provided in connection therewith or the Auction, except as expressly stated in these Sale Procedures or, as to the Successful Bidder, the Term Sheet or the Asset Purchase Agreement. Bid Deadline A Qualified Bidder that desires to make a bid shall deliver a written copy of its bid to __________________ on or before ________________. The Seller may extend such deadline in its sole discretion (such deadline, including such extension, the Bid Deadline). The Seller 4
K&E 11611083.7

shall distribute a copy of each bid to counsel for the Prepetition Agent and counsel for the Committee. After the Bid Deadline, the Seller shall determine, after consulting with the Prepetition Agent and the Committee, which of the Qualifying Bids is likely to result in the highest and best value to the Seller. Bid Protections The Seller may offer, in its sole discretion, after consulting with the Prepetition Agent and the Committee, a break-up fee, which shall be inclusive of expense reimbursement, (the Break-Up Fee) not more than the greater of (a) 2.5% of the cash value of the Qualified Bid designated by the Seller as the Stalking Horse bid and (b) $125,000; provided, however, that (a) no Break-Up Fee shall be offered to an insider of the Seller and (b) in no event shall more than one Break-Up Fee be paid in connection with the Sale of the Assets. In the event a Break-Up Fee becomes due and payable, the Break-Up Fee shall be an allowed administrative expense pursuant to section 503(b)(1) of the Bankruptcy Code. In addition, the Seller may offer, in its sole discretion, after consulting with the Prepetition Agent and the Committee, certain overbid protections. In particular, the Seller may require (a) an initial minimum overbid in the amount of any Break-Up Fee plus an amount up to 10% of the cash value of the Stalking Horse bid and (b) that any additional competing bids submitted thereafter be in minimum additional increments up to 10% of the cash value of the Stalking Horse bid (collectively, the Overbid Protections). Auction If more than one Qualifying Bid is received by the Seller by the Bid Deadline, the Seller shall conduct an Auction. The Auction shall take place at _____________________ on ________________, commencing at _____ __.m. Subject to the Reservation of Rights set forth below, the Auction shall be governed by the following procedures: (a) (b) (c) (d) (e) (f) Only a Qualified Bidder who has submitted a Qualified Bid shall be eligible to participate at the Auction. Each bidder shall be required to confirm that it has not engaged in any collusion with respect to the bidding or the Sale. Bidding shall commence at the amount of the highest Qualifying Bid submitted prior to the Auction. Each bidder shall then be permitted to increase its bid consistent with the Overbid Protections, if any, or other bid increments established by the Seller. The Auction shall be conducted openly and each bidder shall be informed of the terms of the previous bid. The Auction shall continue until there is only one offer that the Seller determines, after consulting with the Prepetition Agent and the Committee, is the highest and best offer from among the Stalking Horse, if any, and the Qualifying Bidders 5
K&E 11611083.7

submitted at the Auction. In making this determination, the Seller shall consider, among other things, (i) the amount of the purchase price, (ii) the form of consideration being offered, (iii) the likelihood of the bidders ability to close a transaction and the timing thereof and (iv) the net benefit to the Sellers estates. Such bid shall be designated the Successful Bid. The Seller shall present the Successful Bid to the Bankruptcy Court for approval at the Sale Hearing. (g) Within one business day after adjournment of the Auction, the Successful Bidder shall complete and execute all agreements, contracts, instruments or other documents evidencing and containing the terms and conditions upon which the Successful Bid was made.

Based upon the terms of the Qualified Bids received, the level of interest expressed as to a particular Asset and such other information as the Seller determines is relevant, the Seller, in its sole discretion, may conduct the Auction in the manner it determines shall result in the highest or otherwise best offer for the Assets including, but not limited to, (i) offering the Assets for bidding as an entire package, in groups of less than all of the Assets, and/or individually, (ii) offering the Assets for bidding in such successive rounds as the Seller determines to be appropriate and (iii) setting opening bid amounts in each round of bidding as the Seller determines to be appropriate. Acceptance of Qualified Bid The Seller presently intends to sell the Assets to the highest or otherwise best Qualified Bidder. The Sellers presentation to the Bankruptcy Court for approval of a particular Qualified Bid does not constitute the Sellers acceptance of the bid. The Seller shall be deemed to have accepted a bid only when the bid has been approved by the Bankruptcy Court at the Sale Hearing. Sale Hearing The Sale Hearing shall take place in the courtroom of Honorable Steven W. Rhodes in the United States Bankruptcy Court, 211 W. Fort Street, Detroit, Michigan 48226 on ___________________. The Sale Hearing may be adjourned or rescheduled without notice by an announcement of the adjourned date at the Sale Hearing or otherwise. At such Sale Hearing, the Seller shall present the Successful Bid to the Bankruptcy Court for approval. Following the Sale Hearing, if such Successful Bidder fails to consummate an approved sale because of a breach or failure to perform on the part of such Successful Bidder, (a) the next highest or otherwise best Qualified Bid, as disclosed at the Sale Hearing, shall be automatically deemed to be the Successful Bid, (b) such bidder shall be subject to these Sale Procedures as if such bidder were originally determined to be the Successful Bidder and (c) the Seller shall be authorized to consummate such sale without further order of the Bankruptcy Court. Return of Good Faith Deposit Good Faith Deposits of all Qualified Bidders shall be held in escrow until the earlier of (a) three business days after all Assets upon which the bidder is bidding have been disposed of 6
K&E 11611083.7

pursuant to these Sale Procedures or (b) 61 days after the Sale Hearing. If a Successful Bidder fails to close the Sale, such partys Good Faith Deposit shall be forfeited to, and retained irrevocably by, the Seller, and the Seller specifically reserves the right to seek all appropriate additional damages from such bidder. Reservation of Rights The Seller may in its sole discretion, after consulting with the Prepetition Agent and the Committee: (a) modify the Sale Procedures or impose, at or prior to the Auction, additional customary terms and conditions on the Sale of the Assets; (b) extend the deadlines set forth herein, adjourn the Auction at the Auction and/or adjourn the Sale Hearing in open court without further notice; (c) modify bidding increments; (d) withdraw from the Sale any portion or all of the Assets at any time prior to or during the Auction or cancel the Auction; (e) reject at any time before the entry of an order of the Bankruptcy Court approving a Qualified Bid, any bid that, in the Sellers sole discretion, is (i) inadequate or insufficient, (ii) not in conformity with conditions of the Sale or (iii) contrary to the best interests of the Seller, its estate and its creditors; or (f) at or before the Sale Hearing, impose such other terms and conditions as it may determine to be in the best interest of the Sellers estates, its creditors and other parties in interest

7
K&E 11611083.7