Collins & Aikman selects lead bidder for automotive flooring and acoustic components businesses

By Caroline Salls

Pittsburgh, Dec. 13 - Collins & Aikman Corp. has selected a lead bidder for the proposed sale of its North American automotive flooring and acoustic components business and entered an exclusivity agreement with the lead bidder while they complete due diligence and negotiate a definitive agreement in the coming weeks, according to a company news release.

The offer will be subject to overbid through a bankruptcy court-monitored auction process.

Collins & Aikman said details of the bid, including the identification of the lead bidder, will be available when it files its sale motion with the bankruptcy court for an expected January hearing.

"We are extremely pleased with the level of interest shown in purchasing our businesses," chief restructuring officer John Boken said in the release.

"The potential sale of the Soft Trim business unit as a going concern would generate important recoveries for our lenders, result in a valuable addition to our buyer's portfolio and, most importantly for our employees, preserve a large number of jobs."

Collins & Aikman said the Soft-Trim business operates 14 facilities in the United States, Canada and Mexico, employs about 4,100 people and produces products for all major automakers.

Collins & Aikman, a Troy, Mich.-based automotive company, filed for Chapter 11 on May 17, 2005 in the U.S. Bankruptcy Court for the Eastern District of Michigan. Its case number is 05-55927.

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