Collins & Aikman requests 60-day exclusivity extension for negotiations

By Caroline Salls

Pittsburgh, Sept. 11 - Collins & Aikman Corp. requested a 60-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The company wants to extend its exclusive plan-filing period to Nov. 27 from Sept. 27 and the solicitation period to Jan. 26 from Nov. 27.

According to the motion, the company and the unofficial steering committee for its senior secured pre-bankruptcy lenders are still in negotiations with the official committee of unsecured creditors regarding the plan.

Also, Collins & Aikman is in negotiations with its principal customers regarding the global resolutions necessary for it to emerge from Chapter 11, and the company is beginning discussions with other significant parties regarding plan-related issues.

Collins & Aikman said terminating the exclusivity periods now would jeopardize the significant progress it has made to date toward emergence from Chapter 11.

A hearing is scheduled for Sept. 25.

Collins & Aikman, a Troy, Mich.-based automotive company, filed for Chapter 11 on May 17, 2005. Its case number is 05-55927.

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