IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS &

AIKMAN CORPORATION, et al. Debtors. ) ) ) ) ) ) ) ) ) Chapter 11 Case Nos. 05-55927 (SWR) (Jointly Administered) Tax Id. #13-3489233 Hon. Steven W. Rhodes

PYRAMID SOLUTIONS, INC.S LIMITED OBJECTION TO THE DEBTORS MOTION FOR ENTRY OF ORDERS APPROVING BIDDING PROCEDURES, SALE OF CERTAIN OF THE ASSETS OF DEBTORS INTERIOR PLASTICS GROUP FREE AND CLEAR OF LIENS, CLAIMS, ENCUMBRANCES AND INTERESTS AND RELATED RELIEF Pyramid Solutions, Inc. (Pyramid), by and through its undersigned counsel, hereby files its limited objection (the Limited Objection) to the Debtors Motion For Entry of Orders Approving Bidding Procedures, Sale of Certain of the Assets of Debtors Interior Plastics Group Free and Clear of Liens, Claims, Encumbrances and Interests and Related Relief (the Sale Motion). 1. Pyramid files this Limited Objection because (a) it is unable to decipher, based on

the several notices regarding contract assumption that it has received, whether the Debtor intends to assume and assign any of the contracts that it has with Pyramid; (b) which Pyramid contracts the Debtor intends to assume (if any); (c) the deadline by which the Debtor must assume and assign its contracts with Pyramid; and (d) if the Debtor intends to assume any contracts with Pyramid, Pyramid also disputes the Debtors assertion that there will not be any cure costs required to be paid to assume and assign such contracts. If Debtor does not plan to assume and assign the executory contracts that it has with Pyramid, Pyramid further objects to any use by the
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Purchaser of goods, services or intellectual property provided by Pyramid. In further support of its Limited Objection, Pyramid states as follows: 2. On May 17, 2005 the Debtors filed petitions under Chapter 11 of the Bankruptcy

Code (the Petition Date), in the United States Bankruptcy Court, Eastern District of Michigan; Case Nos. 05-55927 (Jointly Administered). 3. Pyramid has received several notices regarding the sale of the Debtors Interiors

Plastics Group (the Assets) and, upon information and belief, believes the post-petition contracts that it entered with Debtors, pursuant to which Pyramid provided goods, services and intellectual property, relate to the Debtors Interiors Plastics Group (the Pyramid Contracts). 4. Pyramid first received a Notice of Sale of Assets of Debtors Interiors Plastics

Group Free and Clear of Liens, Claims, Encumbrances and Interests (the First Notice) from the Debtor informing it that the four contracts listed on Exhibit A to the Notice may potentially be assumed and assigned to the Proposed Purchaser or other Successful Bidder. Based on the information provided in the First Notice, Pyramid was only able to identify three of the four contracts that the Debtor potentially intended to assume and assign. The First Notice, however, did not contemplate the payment of any cure costs and did not identify the deadline for the assumption and assignment of contracts. 5. Then Pyramid received a second Notice of Sale of Assets of Debtors Interiors

Plastics Group Free and Clear of Liens, Claims, Encumbrances and Interests (the Second Notice) from the Debtor. The Second Notice informed Pyramid that the contracts listed on a new Exhibit A may potentially be assumed and assigned to the Proposed Purchaser or other Successful Bidder. The Second Notice appeared to include the four contracts listed on the First Notice in addition to a number of additional items which Pyramid could not identify. The

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Second Notice also did not contemplate the payment of any cure costs and did not state the deadline for the assumption of contracts 6. To confuse matters even more, Pyramid received a Notice of Clerical Error

Regarding Potential Assumed Agreement Related to the Debtors Interiors Plastics Group Sale (the Error Notice). The Error Notice sets forth several contracts which the Debtor states it will not assume and assign. It is unclear to Pyramid from the Error Notice which contracts from the First Notice and the Second Notice that the Debtor intends to assume and assign, if any. Pyramid objects to the relief requested in the Sale Motion because: a. The Debtor has not clearly articulated which Pyramid Contracts it intends to assume and assign; b. There has not been a deadline established by which the Debtor must determine which contracts it will assume and assign, and it is improper to allow the Purchaser of the Assets to have the benefit of the Pyramid Contracts if the Purchaser does not assume the Pyramid Contracts and pay to Pyramid upon assumption the cure costs to which it is entitled; and c. Some of the Pyramid Contracts involve intellectual property which cannot be assumed and assigned without Pyramids consent. 7. 365(b)(1) of Title 11 of the United States Code (11 U.S.C. 101 et seq., the

Bankruptcy Code) provides if there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of the assumption of such contract or lease, the trustee (A) cures . . . such default . . . . 8. Furthermore, 365(c)(1)(A) of the Bankruptcy Code provides in relevant part

[t]he trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of 3
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duties if, (1)(A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties and (B) such party does not consent to such assumption or assignment . . . . 365(c)(1)(A) is applicable to the Pyramid Contracts because they contain intellectual property licenses. Therefore, the Pyramid Contracts cannot be assigned to a

purchaser over Pyramids objections. WHEREFORE, Pyramid respectfully requests that this Honorable Court enter an order denying the Sale Motion, as regards the contracts between the Debtors and Pyramid, or in the alternative enter an order compelling the Debtor to (a) file with the Court and serve on Pyramid a notice setting forth in detail those Pyramid Contracts that the Debtors intend to assume and assign and the cure costs that will be owing to Pyramid on the date by which the contract must be assumed and assigned; (b) establishing a date by which the Pyramid Contracts must be assumed or assigned; and (c) establishing a date by which all cure costs arising out of the assumption of the Pyramid Contracts must be paid, and grant such other and further relief as the Court deems just. Respectfully Submitted, By: /s/ Sheryl L. Toby Sheryl L. Toby (P39114) Gina M. Capua (P67505) Dykema Gossett PLLC Attorneys for Pyramid Solutions Inc. 400 Renaissance Center Detroit, Michigan 48243-1668 (313) 568-5407 (313) 568-6690

Dated: May 10, 2007

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