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Collins & Aikman's bankruptcy hearing postponed

From freep| June 05,2007

One of the last major 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 today has been moved to July 12.

But the Southfield-based auto supplier expects to be in bankruptcy court in Detroit today seeking permission to sell its automotive flooring and acoustic components business and pieces of its soft-top convertible unit, said Collins & Aikman spokesman David Youngman.

The company has agreed to sell the division that makes automotive flooring and noise-deadening automotive interiors for $126 million to Wilbur Ross' International Automotive Components Group North America Inc.

The company's parent already has acquired Collins & Aikman's European operations.

Collins & Aikman also is expected to 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 $443,536 mainly for tools and equipment, Collins & Aikman will transfer to Magna a portion of its business with General Motors Corp., Ford Motor Co. and DaimlerChrysler AG.

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

Saddled with debt from a series of acquisitions, the company filed for Chapter 11 bankruptcy protection in May 2005. Its former Chairman and CEO David Stockman has pleaded not guilty to multiple charges including conspiracy in an alleged effort to cover up the company's deteriorating finances.

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