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AIKMAN CORPORATION, ET AL. Debtors. (Jointly Administered) _________________________________/ COMMENTS OF KILPATRICK & ASSOCIATES, P.C. TO PROPOSED ORDER REGARDING MEDIATION ON BEHALF OF EASTERN PROPANE GAS, INC., TOYOTA MOTOR CREDIT CORPORATION, AND WASTE MANAGEMENT, INC. NOW COMES KILPATRICK & ASSOCIATES, P.C. on behalf of Eastern Propane Gas, Inc., Toyota Motor Credit Corporation and Waste Management, Inc. and provides the following comments to the Proposed Order Regarding Mediation: 1. On or about May 17, 2005, the Debtors filed Voluntary Petitions under Chapter Case No. 05-55927-SWR Honorable STEVEN W. RHODES Chapter 11

11, Title 11 of the U.S. Bankruptcy Code. 2. On or about May 15, 2007, the Debtors filed in excess of 1000 adversary

proceedings seeking recovery of preferential transfers and avoidance of fraudulent conveyances (Adversary Proceedings). 3. 4. Only a small percentage of the Adversary Proceedings have been settled to date. Kilpatrick & Associates, P.C. currently represents eight defendants in pending

Adversary Proceedings. 5. On October 1, 2007, the Court issued a Request for Comments to its Proposed

Order Regarding Mediation (Proposed Order). 6. The Proposed Order names individuals as mediators who are members of firms

which are counsel to defendants in Adversary Proceedings filed in the case.




7. 8.

A mediator should be seen as unbiased, with no appearance of impropriety. Kilpatrick & Associates, P.C. recommends that any mediator appointed for the

Adversary Proceedings be from the current mediation panel for the Bankruptcy Court for the Eastern District of Michigan, former judges or professors. 9. The Proposed Order provides that the mediator shall schedule mediations

providing for notice of a location, date and time upon fourteen (14) days notice. 10. If counsel or defendant must travel to mediation, fourteen days notice is

insufficient time in which to manage multiple schedules and make cost effective travel arrangements. Kilpatrick & Associates, P.C. requests that at least 21 days notice be provided. 11. If a particular law firm is counsel for more than one defendant, mediation for all

Adversary Proceedings for that law firm which are scheduled outside the office location of the defendants law firm should be grouped by location and date of mediation to limit the costs to defendants. 12. Paragraph 14 of the Proposed Order goes beyond an attempt to limit mediation

discussions to privileged settlement discussions and invokes confidentiality. Such a provision allows Plaintiffs counsel to discuss strategy but appears to limit defendants counsel from discussing strategy with other clients based on prior mediation actions. 13. The Proposed Order appears to require that all cases which are still pending as of

November 30, 2007 or such later date as determined by Plaintiffs counsel shall be mediated. 14. Mandatory mediation within the discretion of Plaintiffs counsel places an

unreasonable burden and an attempt to leverage settlements on many defendants who have tried to narrow the issues with Plaintiffs counsel without success.


The Proposed Order should state that Plaintiffs will have a person with settlement

authority at the mediation and not just counsel. WHEREFORE, Movant prays this Court revise the Proposed Order Regarding Mediation as indicated herein and grant whatever further and other Relief this Court deems just and proper. Respectfully submitted; KILPATRICK & ASSOCIATES, P.C.

/S/ Leonora K. Baughman RICHARDO I. KILPATRICK (P35275) LEONORA K. BAUGHMAN (P33534) Attorneys for Defendants 903 North Opdyke Road, Suite C Auburn Hills, MI 48326 (248) 377 - 0700 Dated: October 15, 2007