Collins & Aikman plastics group stalking horse bidder demands copies of competing bids

By Caroline Salls

Pittsburgh, May 11 - Collins & Aikman Corp. plastics group sale stalking horse bidder Cadence Innovation LLC asked the U.S. Bankruptcy Court for the Eastern District of Michigan to force Collins & Aikman to provide it with copies of competing bids in accordance with the bid procedures, according to a Friday court filing.

According to the motion, the bid procedures require Collins & Aikman to provide Cadence with copies of the competing bids within four hours after the initial bid deadline, which was Thursday at 4 p.m. ET.

However, Cadence said Collins & Aikman unilaterally decided not to share the bids with the stalking horse bidder, even though Collins & Aikman insisted on reserving the right to show Cadence's bid to other bidders.

Cadence said the only explanation offered was that by revising its stalking horse bid, Cadence is now classified as a bidder with which Collins & Aikman is negotiating, despite the requirements of the approved bidding procedures.

Cadence said Collins & Aikman's actions threaten to deprive the stalking horse bidder of a fair chance to purchase the assets.

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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