IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION,
et al.1 Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification #13-3489233) Honorable Steven W. Rhodes
STIPULATION BY AND BETWEEN THE COLLINS & AIKMAN POST-CONSUMMATION TRUST AND GARY E. NICKELL RESOLVING MOTION FOR MODIFICATION OF CONFIRMATION ORDER [DOCKET NO. 9298] This Stipulation resolving the motion of Gary E. Nickell (Movant) for modification of order of confirmation to allow state court action for personal injury to proceed to judgment/settlement from the above-captioned debtors (collectively, the Debtors) insurer [Docket No. 9298] (the Motion) is made as of August 6, 2008, by and between the Collins & Aikman Post-Consummation Trust (the PCT), as successor to the Debtors, and the Movant.
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The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 05-55949; Becker Group, LLC (d/b/a/ Collins & Aikman Premier Mold), Case No. 05-55977; Brut Plastics, Inc., Case No. 05-55957; Collins & Aikman (Gibraltar) Limited, Case No. 05-55989; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation), Case No. 05-55952; Collins & Aikman Asset Services, Inc., Case No. 05-55959; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.), Case No. 05-55965; Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.), Case No. 0555991; Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.), Case No. 05-55958; Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.), Case No. 05-55956; Collins & Aikman Automotive International, Inc., Case No. 05-55980; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.), Case No. 05-55985; Collins & Aikman Automotive Mats, LLC, Case No. 05-55969; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.), Case No. 05-55978; Collins & Aikman Automotive Services, LLC, Case No. 05-55981; Collins & Aikman Canada Domestic Holding Company, Case No. 05-55930; Collins & Aikman Carpet & Acoustics (MI), Inc., Case No. 05-55982; Collins & Aikman Carpet & Acoustics (TN), Inc., Case No. 05-55984; Collins & Aikman Development Company, Case No. 05-55943; Collins & Aikman Europe, Inc., Case No. 05-55971; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.), Case No. 05-55963; Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.), Case No. 05-55976; Collins & Aikman Interiors, Inc., Case No. 05-55970; Collins & Aikman International Corporation, Case No. 05-55951; Collins & Aikman Plastics, Inc., Case No. 05-55960; Collins & Aikman Products Co., Case No. 05-55932; Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 05-55979; Dura Convertible Systems, Inc., Case No. 05-55942; Gamble Development Company, Case No. 05-55974; JPS Automotive, Inc. (d/b/a PACJ, Inc.), Case No. 05-55935; New Baltimore Holdings, LLC, Case No. 05-55992; Owosso Thermal Forming, LLC, Case No. 05-55946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 05-55962; and Wickes Manufacturing Company, Case No. 05-55968.
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WHEREAS, on May 17, 2005 (the Petition Date), the Debtors filed petitions for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. 101-1330 (the Bankruptcy Code), in the United States Bankruptcy Court for the Eastern District of Michigan (the Bankruptcy Court); and WHEREAS, on July 18, 2007, the Bankruptcy Court entered an order [Docket No. 7827] (the Confirmation Order) confirming the First Amended Joint Plan of Collins & Aikman Corporation and Its Debtor Subsidiaries [Docket No. 7731] (the Plan); WHEREAS, on April 28, 2008, the Movant filed the Motion, which is based upon the Movants action against the Debtors, styled, Gary E. Nickell v. Collins Aikman Corp., et al, being case number 11640, in the Circuit Court (the State Court) of Robertson County, at Springfield, Tennessee (the State Action); and WHEREAS, pursuant to paragraph 5 of the Confirmation Order and Article XII.E of the Plan, the State Action against the Debtors is permanently enjoined; and WHEREAS, in the Motion, the Movant requests that the Bankruptcy Court allow the Movant to pursue the State Action to seek recovery solely from any applicable insurance maintained by the Debtors. NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is hereby stipulated and agreed to by and between the parties, as follows: 1. The injunction provision of paragraph 5 of the Confirmation Order and
Article XII.E of the Plan shall be modified for the sole and limited purpose of permitting (a) the State Action to proceed in the State Court and/or (b) the Movant to conduct negotiations directly with the Debtors applicable insurance carriers; provided, however, no monetary settlement or
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judgment associated with the State Action, if any, may be enforced against the assets of either of the Debtors estates or the PCT. 2. The Movant shall have authority to collect all monetary or other forms of
remuneration or relief, if any, to which the Movant may be determined to be entitled in connection with the State Action only from the Debtors applicable insurance carriers. 3. The Movant hereby waives his rights to collect any monetary or other forms of
remuneration or relief from the Debtors, the Debtors estates and/or the PCT. 4. The Debtors and the PCT shall have no obligation whatsoever to make any
distribution of any property to the Movant, including, without limitation, on account of any proof of claim the Movant has filed, could have potentially filed or could potentially file against the Debtors, the Debtors estates or the PCT. 5. Nothing herein is intended or shall be construed to waive any defenses, setoffs,
objections or counterclaims that the Debtors, the PCT or the Debtors applicable insurance carriers may have with respect to the State Action. 6. The modification of the injunction provision of paragraph 5 of the
Confirmation Order and Article XII.E of the Plan, as set forth in this Stipulation, is limited to the Movant, and nothing herein is intended or shall be construed to modify, terminate or in any way affect the injunction provision of paragraph 5 of the Confirmation Order and Article XII.E of the Plan as it pertains to any other party that is, or may later become, involved in the State Action. The injunction provision of paragraph 5 of the Confirmation Order and Article XII.E of the Plan as it pertains to such other parties shall remain in full force and effect. 7. The Bankruptcy Court shall retain jurisdiction (and the PCT and the Movant
consent to such retention of jurisdiction) to resolve any disputes or controversies arising from or
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related to this Stipulation. Any request for relief brought before the Bankruptcy Court to resolve a dispute arising from or related to this Stipulation shall be brought on proper notice and in accordance with relevant Federal Rules of Bankruptcy Procedure and Local Rules for the Bankruptcy Court of the Eastern District of Michigan. 8. This Stipulation comprises the entire agreement between the parties in respect of
the subject matter hereof. 9. This Stipulation may be executed in multiple counterparts, any of which may be
transmitted by facsimile, and each of which shall be deemed an original, but all of which together shall constitute one instrument. 10. The signatories to this Stipulation represent that they have been duly authorized
by their clients to execute this Stipulation. 11. This Stipulation shall not be modified, altered, amended or vacated without
written consent of all parties hereto. Any such modification, alteration, amendment or vacation, in whole or in part, shall be subject to the approval of the Bankruptcy Court. 12. The terms and conditions of this Stipulation shall be immediately effective and
enforceable upon the entry of the order approving this Stipulation. [Remainder of the page intentionally left blank.]
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KIRKLAND & ELLIS LLP /s/ Scott R. Zemnick Richard M. Cieri (NY RC 6062) Citigroup Center 153 East 53rd Street New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 -andDavid L. Eaton (IL 3122303) Ray C. Schrock (IL 6257005) Scott R. Zemnick (IL 6276224) 200 East Randolph Drive Chicago, Illinois 60601 Telephone: (312) 861-2000 Facsimile: (312) 861-2200 -andCARSON FISCHER, P.L.C. Joseph M. Fischer (P13452) 4111 West Andover Road West - Second Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the PCT
A. MARK SEGRETI, JR. /s/ A. Mark Segreti, Jr. A. Mark Segreti, Jr. 1405 Streamside Drive Dayton, Ohio 45459 Telephone: (937) 439-0386
Counsel for the Movant
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