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Lease Amendment Motion for Debtors

This motion requests court approval for Collins & Aikman Corporation and its affiliated debtors to enter into an amendment to an existing lease with TR Associates, LLC. The debtors are seeking this amendment because the original lease terms were commercially unreasonable. The proposed amendment would extend the lease term, reduce the monthly rent, and provide for six months notice and payment of administrative rent if the debtors later reject the lease. The debtors believe the amendment is a reasonable exercise of their business judgment and will benefit their reorganization.
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0% found this document useful (0 votes)
181 views26 pages

Lease Amendment Motion for Debtors

This motion requests court approval for Collins & Aikman Corporation and its affiliated debtors to enter into an amendment to an existing lease with TR Associates, LLC. The debtors are seeking this amendment because the original lease terms were commercially unreasonable. The proposed amendment would extend the lease term, reduce the monthly rent, and provide for six months notice and payment of administrative rent if the debtors later reject the lease. The debtors believe the amendment is a reasonable exercise of their business judgment and will benefit their reorganization.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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
Hearing Date (If Necessary): April 13, 2006 at 2:00 p.m. Objection Deadline: April 10, 2006 at 4:00 p.m.

MOTION FOR AN ORDER AUTHORIZING THE DEBTORS TO ENTER INTO AN AMENDMENT TO AN EXISTING LEASE WITH TR ASSOCIATES, LLC The above-captioned debtors (collectively, the Debtors) hereby move the Court (the Motion) for the entry of an order, substantially in the form of Exhibit A, authorizing the Debtors to enter into an amendment to an existing lease with TR Associates, LLC, substantially in the form of the amendment to the lease (the Amendment) attached hereto as Exhibit B. In support of this Motion, the Debtors respectfully state as follows:

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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0555927060329000000000008

(2

Jurisdiction 1. The Court has jurisdiction over this matter pursuant to 28 U.S.C. 1334. This

matter is a core proceeding within the meaning of 28 U.S.C. 157 (b)(2). 2. 3. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. The statutory bases for the relief requested herein are sections 363 and 503 of the

Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code). Background 4. On May 17, 2005 (the Petition Date), the Debtors filed their voluntary petitions

for relief under chapter 11 of the Bankruptcy Code. The Debtors are operating their businesses and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these cases. On the Petition Date, the Court entered an order jointly administering these cases pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. 5. On May 24, 2005, the United States trustee appointed an official committee of

unsecured creditors (the Committee) pursuant to section 1102 of the Bankruptcy Code. 6. The Debtors and their non-debtor affiliates are leading global suppliers of

automotive components, systems and modules to all of the worlds largest vehicle manufacturers, including DaimlerChrysler AG, Ford Motor Company, General Motors Corporation, Honda Motor Company, Inc., Nissan Motor Company Unlimited, Porsche Cars GB, Renault Crateur DAutomobiles, Toyota SA and Volkswagen AG. 7. Since the Petition Date, the Debtors have been evaluating their real property

leases and interests. During the course of this evaluation, the Debtors determined that they were paying commercially unreasonable terms under a certain lease between TR Associates, LLC (TR Associates) and Dura Convertible Systems, Inc. (DCS, a Debtor), dated as of 2
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August 1, 1984 (as amended from time to time, the Lease), for certain real property located at 2011 West Beecher Street, Adrian, Michigan (the Property). After exploring alternatives to the Property and the Lease, the Debtors determined that it was in their best interests and in the best interests of their estates to continue their use and occupation of the Property, provided they were able to negotiate reasonable Lease terms with TR Associates. 8. As such, the Debtors engaged in a series of arms-length, good faith negotiations

with TR Associates to determine if the Lease could be amended. Based upon these negotiations, the parties were able to arrive at a commercially reasonable amendment to the Lease, which has been documented in the Amendment. 9. The material terms of the Amendment are as follows:2 (i) (ii) Lease Term: The lease term is extended by seventeen (17) months up to and through December 31, 2010. Rent: Monthly rent is reduced from the current rate of $9,500.00 a month to $6,958.33 a month for the period from April 1, 2006 through January 31, 2007, and $8,208.33 for the period from February 1, 2007 through December 31, 2010; Amendment does not imply assumption or rejection: TR Associates and the Debtors acknowledge and agree that neither the execution nor delivery of nor entry into the Amendment by either party, nor any partys conduct or actions taken in support thereof or in accordance therewith, shall be deemed to be an assumption, adoption, rejection or termination of the Lease or Guaranty; and Rejection Option: If DCS rejects the Lease in accordance with section 365 of the Bankruptcy Code, the effective date of such rejection will be no less than six (6) months after the date of notification of such rejection. If DCS vacates the Property before the six-month notice of the effective date of the rejection of the Lease, the Debtors

(iii)

(iv)

The above summary of the Amendment is provided solely for the convenience of the Court and the parties in interest. To the extent that there are any discrepancies between this summary and the Amendment, the terms of the Amendment shall govern.

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shall be required to continue to pay rent under the Lease, as amended by the Amendment, up through the effective date of such rejection and such rents shall be accorded administrative expense status under section 503(b)(1)(A) of the Bankruptcy Code. Relief Requested 10. By this Motion, the Debtors respectfully seek authority to enter into the

Amendment pursuant to section 363(b) of the Bankruptcy Code. Basis for Relief 11. Section 363(b)(1) of the Bankruptcy Code provides that [t]he trustee, after notice

and a hearing, may use, sell, or lease, other than in the ordinary course of business, property of the estate. 11 U.S.C. 363(b)(1). Courts within the Sixth Circuit have held that transactions should be approved under section 363 when they are supported by sound business judgment. See, e.g., Stephens Indus., Inc. v. McClung, 789 F.2d 386, 390 (6th Cir. 1986) (concluding that a court can authorize a sale of a Debtors assets when a sound business purpose dictates such action.); In re Embrace Sys. Corp., 178 B.R. 112, 124 (Bankr. W.D. Mich. 1995); see also In re North American Royalties, Inc., 276 B.R. 860, 866 (Bankr. E.D. Tenn. 2002). 12. Moreover, section 503 of the Bankruptcy Code authorizes payment of post-

petition obligations as administrative expenses to the extent that a post-petition claim both (a) arises from a transaction with the debtor-in-possession as opposed to the preceding entity (or alternatively, that the claimant gives consideration to the debtor-in-possession) and (b) directly and substantially benefits the estate. See 11 U.S.C. 503; see, e.g., In re United Trucking Service Inc., 851 F.2d 159, 161-62 (6th Cir. 1988) (citing In re Mammoth Mart, Inc., 536 F.2d 950, 954 (1st Cir. 1976)). Here, administrative treatment of the potential rent claims for the six months following notice of any post-Amendment rejection of the Lease is warranted. Clearly, the Amendment is being entered into by the Debtors and TR Associates post-petition. 4
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Moreover, the Amendment benefits the Debtors by permitting their business operations to continue at the Property, uninterrupted, on more favorable economic terms. 13. The Debtors decision to enter into the Amendment is supported by sound

business judgment. In particular, after reviewing the alternatives and the prohibitive costs associated with relocating the Debtors operations from the Property with the Debtors real estate advisors, Keen Realty, LLC,3 the Debtors determined that the Amendment presented the most beneficial option for the Debtors and their estates. 14. Moreover, by entering into the Amendment, the Debtors will be able to: (a) retain

the continued use of the Property under significantly reduced rent obligations; (b) avoid premature assumption or rejection of the Lease; and (c) retain the option to reject the Lease in the future if doing so later proves to be in the best interests of the Debtors and their estates. 15. Lastly, by entering into the Amendment, the Debtors will secure an extension of

the lease term through December 31, 2010 at a lower rate than the Debtors current rent obligations under the Lease. Without the Amendment, the Debtors would be forced to continue to lease the Property under the existing uneconomical rates or would be compelled to pursue less advantageous proposals from other lessors. 16. As such, the Debtors respectfully submit that entering into the Amendment is

supported by their reasonable business judgment and is in the best interest of the Debtors estates.

On November 22, 2005, the Court approved the Debtors application to retain CB Richard Ellis, Inc. and Keen Realty, LLC as real estate advisors [Docket No. 1802].

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Notice 17. Notice of this Motion has been given to the Core Group, the Primary Service List

and TR Associates as required by the Case Management Procedures.4 In light of the nature of the relief requested, the Debtors submit that no further notice is required. No Prior Request 18. court. No prior motion for the relief requested herein has been made to this or any other

Capitalized terms used in this paragraph 17 not otherwise defined herein shall have the meanings set forth in the First Amended Notice, Case Management and Administrative Procedures filed on June 9, 2005 [Docket No. 294].

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WHEREFORE, the Debtors respectfully request the entry of an order, substantially in the form attached hereto as Exhibit A, (a) authorizing the Debtors to enter into the Amendment and (b) granting such other further relief as is just and proper. Dated: March 29, 2006 KIRKLAND & ELLIS LLP /s/ Ray C. Schrock 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) Marc J. Carmel (IL 6272032) 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 Andover Road West, Second Floor Bloomfield Hills, Michigan 48302-1924 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors

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EXHIBIT A

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

ORDER AUTHORIZING THE DEBTORS TO ENTER INTO AN AMENDMENT TO AN EXISTING LEASE WITH TR ASSOCIATES, LLC Upon the motion (the Motion)2 of the above-captioned debtors (collectively, the Debtors) for an order authorizing the Debtors to enter into an amendment to an existing lease with TR Associates, LLC, it appearing that the relief requested is in the best interest of the Debtors estates, their creditors and other parties in interest; it appearing that the Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334; it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this

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. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Motion.

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proceeding and this Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409; notice of this Motion and the opportunity for a hearing on this Motion was appropriate under the particular circumstances and that no other or further notice need by given; and after due deliberation and sufficient cause appearing therefore, It is hereby FOUND A. TR Associates and DCS are parties to a lease dated as of August 1, 1984, as

amended by the first amendment to the Lease dated as of July 27, 1994, the second amendment to the Lease dated as of November 1, 1999 and the third amendment to the Lease dated as of June 30, 2000 under which TR Associates leases to DCS certain land and buildings located at 2011 West Beecher Street, Adrian, Michigan (collectively, the Lease). The current Lease term expires on July 31, 2009 and the current monthly rent is $9,500.00. B. On May 17, 2005, the Debtors filed their voluntary petitions for relief under

chapter 11 of the Bankruptcy Code. C. On December 21, 2005, the Debtors filed their Second Motion for Order

Extending the Period within which the Debtors Must Assume or Reject Unexpired Leases of Nonresidential Real Property [Docket No. 1934]. D. On January 6, 2006, the Court entered an Order Extending the Period Within

Which the Debtors Must Assume or Reject Unexpired Leases of Nonresidential Real Property (the Extension Order) [Docket No. 2023]. With certain exceptions set forth in the

Extension Order, the Extension Order granted the Debtors until plan confirmation to decide whether to assume or reject unexpired leases for nonresidential property. The Lease is subject to the Extension Order.

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E.

On March [ ], 2006, the Debtors and TR Associates agreed to enter into an

amendment to the Lease (the Amendment), subject to Court approval. The Amendment, among other things: (i) extends the term of the Lease from its present expiration date of July 31, 2009 to December 31, 2010; (ii) modifies the Lease to provide that for the period April 1, 2006 through January 31, 2007, rent will be $6,958.33 per month and for the period February 1, 2007 through December 31, 2010, rent will be $8,208.33 per month; and (iii) notwithstanding provisions of the Extension Order, the Bankruptcy Code or the Bankruptcy Rules to the contrary, if DCS rejects the Lease under the Bankruptcy Code, the effective date of such rejection can be no less than six months from the date of notification of such rejection. It is hereby ORDERED 1. 2. The Motion is granted as provided in this Order. If DCS rejects the Lease in accordance with the Bankruptcy Code, the effective

date of such rejection must be no less than six (6) months from the date of notification of such rejection. 3. If DCS vacates the leased premises before the six (6) month effective date of any

rejection of the Lease, the Debtors shall be required to continue to pay rent under the Lease, as amended by the Amendment, up through the effective date of such rejection and such rents shall be accorded administrative expense status under section 503(b)(1)(A) of the Bankruptcy Code. 4. The Debtors are authorized to take all actions necessary to effectuate the relief

granted pursuant to this Order in accordance with the Motion. 5. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry.

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6.

The Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

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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

NOTICE AND OPPORTUNITY TO RESPOND TO THE MOTION FOR AN ORDER AUTHORIZING THE DEBTORS TO ENTER INTO AN AMENDMENT TO AN EXISTING LEASE WITH TR ASSOCIATES, LLC PLEASE TAKE NOTICE THAT the above-captioned debtors (collectively, the Debtors) have filed their Motion for an Order Authorizing the Debtors to Enter into an Amendment to an Existing Lease with TR Associates, LLC (the Motion). PLEASE TAKE FURTHER NOTICE THAT your rights may be affected. You may wish to review the Motion and discuss it with your attorney, if you have one in these cases. (If you do not have an attorney, you may wish to consult one.)

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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PLEASE TAKE FURTHER NOTICE THAT in accordance with the First Amended Notice, Case Management and Administrative Procedures filed on June 9, 2005 [Docket No. 294] (the Case Management Procedures), if you wish to object to the Court granting the relief sought in the Motion, or if you want the Court to otherwise consider your views on the Motion, no later than April 10, 2006 at 4:00 p.m. prevailing Eastern Time, or such shorter time as the Court may hereafter order and of which you may receive subsequent notice, you or your attorney must file with the Court a written response, explaining your position at:2 United States Bankruptcy Court 211 West Fort Street, Suite 2100 Detroit, Michigan 48226 PLEASE TAKE FURTHER NOTICE THAT if you mail your response to the Court for filing, you must mail it early enough so the Court will receive it on or before the date above. PLEASE TAKE FURTHER NOTICE THAT you must also serve the documents so that they are received on or before April 10, 2006 at 4:00 p.m. prevailing Eastern Time, in accordance with the Case Management Procedures, including to: Kirkland & Ellis LLP Attn: Richard M. Cieri Citigroup Center 153 East 53rd Street New York, New York 10022 Facsimile: (212) 446-4900 E-mail: rcieri@[Link] -and-

Response or answer must comply with Rule 8(b), (c) and (e) of the Federal Rules of Civil Procedure.

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Kirkland & Ellis LLP Attn: David L. Eaton Ray C. Schrock Marc J. Carmel 200 East Randolph Drive Chicago, Illinois 60601 Facsimile: (312) 861-2200 E-mail: deaton@[Link] rschrock@[Link] mcarmel@[Link] -andCarson Fischer, P.L.C. Attn: Joseph M. Fischer 4111 Andover Road West, Second Floor Bloomfield Hills, Michigan 48302-1924 Facsimile: (248) 644-1832 E-mail: jfischer@[Link] PLEASE TAKE FURTHER NOTICE THAT if no responses to the Motion are timely filed and served, the Court may grant the Motion and enter the order without a hearing as set forth in Rule 9014-1 of the Local Rules for the United States Bankruptcy Court for the Eastern District of Michigan.

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Dated: March 29, 2006

KIRKLAND & ELLIS LLP /s/ Ray C. Schrock 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) Marc J. Carmel (IL 6272032) 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 Andover Road West, Second Floor Bloomfield Hills, Michigan 48302-1924 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors

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CERTIFICATE OF SERVICE I, Ray Schrock, an attorney, certify that on the 29th day of March, 2006, I caused to be served, by e-mail, fascsimile and by overnight delivery, in the manner and to the parties set forth on the attached service lists, a true and correct copy of the foregoing Motion for an Order Authorizing the Debtors to Enter into an Amendment to an Existing Lease with TR Associates, LLC.

Dated: March 29, 2006 /s/ Ray Schrock Ray Schrock

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Served via Electronic Mail

CREDITOR NAME A Freeman Adrian City Hall Alice B Eaton Athens City Tax Collector Brendan G Best Bryan Clay Champaign County Collector Chris Kocinski City Of Eunice City Of Evart City Of Kitchener Finance Dept City Of Lowell City Of Marshall City Of Muskegon City Of Port Huron City Of Rialto City Of Rochester Hills City Of Salisbury City Of Westland City Of Woonsocket Ri City Treasurer City Treasurer DaimlerChrysler DaimlerChrysler Daniella Saltz Danielle Kemp David H Freedman David Heller David Youngman DuPont Earle I Erman Erin M Casey Frank Gorman Gail Perry Ge Capital GE Polymerland George E Schulman Hal Novikoff Heather Sullivan James A Plemmons Jim Clough Joe LaFleur Joe Saad John A Harris John Green John J Dawson John S Sawyer Josef Athanas Joseph Delehant Esq Joseph M Fischer Esq K Crumbo K Schultz Kim Stagg Kimberly Davis Rodriguez Leigh Walzer Levine Fricke Inc M Crosby Macomb Intermediate School Marc J Carmel Mark Fischer Michael R Paslay Michael Stamer Michigan Department Of Mike O'Rourke

CREDITOR NOTICE NAME John Fabor Mike Keith

Barb Neal The Mator at City Hall Roger Elkins City Manager Pauline Houston Lowell Regional Wastewater Maurice S Evans City Manager Bob Robles Treasurer's Office City Treasurer Kurt A Dawson City Assesor Treasurer Business License Div Pretreatment Division Tracy Horvarter

Bruce Tobiansky

Val Venable

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In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)

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EXHIBIT B

K&E 11038157.7

COLLINS & AIKMAN CORPORATION 313 Bethany Road Albemarle, NC 28001 AMENDMENT TO LEASE

Re:

Collins & Aikman leasehold located at 2011 West Beecher Street, Adrian, Michigan 49221 (the Premises)

The Amendment to the Lease (the Amendment) among TR Associates, LLC, a Michigan limited liability company (Lessor), Dura Convertible Systems Inc., a Delaware corporation (Lessee) and Collins & Aikman Products, Co., a Delaware corporation (Guarantor), is to confirm the agreement reached with respect to the Lease dated as of August 1, 1984, as amended by the First Amendment to the Lease dated as of July 27, 1994, the Second Amendment to the Lease dated as of November 1, 1999 and the Third Amendment to the Lease dated as of June 30, 2000 (collectively, the Lease) among Lessor, Lessee and Guarantor with respect to the above-referenced Premises. The terms of the agreement among Lessor, Lessee and Guarantor are as follows: Subject to approval by the Bankruptcy Court for the Eastern District of Michigan, the Effective Date of the Amendment shall be April 1, 2006. 2. Upon the Effective Date, the basic rental terms of the Lease shall be modified to reflect the following rent schedule: April 1, 2006 January 31, 2007: monthly rent of $6,958.33; and February 1, 2007 December 31, 2010: monthly rent of $8,208.33. 3. The term of the Lease shall be extended so as to expire on December 31, 2010. 4. Lessee agrees that if it rejects the Lease under section 365(a) of the Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code), the effective date of such rejection shall be no less than six (6) months after the date of the notification of such rejection. 5. The parties acknowledge and agree that neither the execution nor delivery of nor entry into the Amendment by either party, nor any partys conduct or actions taken in support thereof or in accordance therewith, shall be deemed to be an assumption, adoption, affirmation, rejection or termination of the Lease or the Guaranty (as defined in the Lease). Lessor, its successors, assigns and subsidiaries, and their respective officers, agents or employees (collectively, Counterparty) agree and acknowledge: (a) that the execution of the Amendment shall not alter the pre-petition nature of the Lease or the Guaranty for the purposes of the jointly administered bankruptcy cases of Collins & Aikman Corporation and certain of its affiliates pending in the Eastern District of Michigan, jointly administered under case no. 05-55927 (SWR); (b) that the execution of the Amendment will not alter the validity, priority or amount of any claims of Counterparty that may have arisen prior to the entry of the Amendment; and (c) not to assert or claim at any time that the execution of the Amendment operates in any way as an assumption, adoption, rejection, affirmation or termination of the Lease (as amended by the Amendment) or the Guaranty. 6. Except as set forth herein, all other terms of the Lease shall remain unchanged and in full force and effect. 7. The Guaranty shall remain in full force and effect in accordance with its terms. 8. Lessor represents and warrants that the execution of the Amendment does not require the approval of any third party. 9. Lessee reserves all of its rights as a debtor-in-possession under the Bankruptcy Code, including to assume or reject the Lease (as amended by the Amendment). 10. The signatories to this Amendment represent and warrant that they have been duly authorized to execute this Amendment. 1.

K&E 11038157.7

AGREED AND ACCEPTED this _____ day of __________, 2006 TR ASSOCIATES, LLC

AGREED AND ACCEPTED this _____ day of __________, 2006 DURA CONVERTIBLE SYSTEMS, INC., DEBTORIN-POSSESSION By:____________________________________ Name: Title:

By:_______________________________ Name: Title:

AGREED AND ACCEPTED this _____ day of __________, 2006 COLLINS & AIKMAN PRODUCTS, CO.

By:_______________________________ Name: Title:

2
K&E 11038157.7

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