Collins & Aikman Gets More Time to Sell Off Business, Resolve Liquidation Objections

From Detroit Free Press

One of the last major bankruptcy hearings in Collins & Aikman Corp.’s Chapter 11 bankruptcy case has been postponed to give the company more time to sell off parts of its business and settle objections to the firm’s plan to liquidate.

A hearing on Collins & Aikman’s confirmation plan that was slated for Tuesday has been moved to July 12.

But the Southfield, MI, auto supplier expects to be in bankruptcy court in Detroit Tuesday to ask a judge to approve the sale of its automotive flooring and acoustics business and pieces of its soft-top convertible business.

Collins & Aikman has agreed to sell its division that makes automotive flooring and noise-deadening automotive interiors components for $126 million to Wilbur Ross’ International Automotive Components Group North America Inc.

The company will also ask a judge to approve the sale of parts of its soft-top convertible business to Magna Car Top Systems Inc., a subsidiary of Magna International Inc.

Through the sale, valued at $443,563 mainly for tools, Collins & Aikman will transfer to Magna a portion of its business with General Motors Corp., Ford Motor Co. and DaimlerChrysler AG.

Collins & Aikman is still negotiating the sale of its plastics business with Cadence Innovation.

The company filed for Chapter 11 bankruptcy protection in May 2005. Last year, Collins & Aikman decided to liquidate instead of reorganize as a new company.