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

RESPONSE OF SUMMIT POLYMERS, INC. TO THE COLLINS & AIKMAN LITIGATION TRUST'S SEVENTY-FIRST OMNIBUS OBJECTION TO CLAIMS (INSUFFICIENT BOOKS AND RECORDS) Summit Polymers, Inc. ("Claimant"), by and through its undersigned counsel, files this Response to the Collins & Aikman Litigation Trust's Seventy-First Omnibus Objection to Claims (Insufficient Books and Records) (the "Objection"). In support thereof, Claimant respectfully states as follows: 1. On May 17, 2005, the Debtors filed voluntary petitions under Chapter 11 of the

Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Michigan.

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. 05-55991; 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. 05-55985; 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. 05-55964; Cornet 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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This Court previously entered an Order establishing March 22, 2006 as the

deadline to file pre-petition claims against the Debtors. 3. (the "Claim"). 4. The Claim consists of amounts due for trade receivables ($660,791.05), pricing Claimant filed Claim No. 8,326 in the amount of $1,761,793.38 on March 6, 2006

discrepancies ($576,567.33), unissued tooling purchase orders ($50,190.00), obsolescence claims ($94,322.00), ER&D cost sharing ($354,211.00), and unrecovered packaging ($25,712.00). 5. When Claimant filed the Claim, Claimant included two binders of detailed

documentation to support the Claim, including invoices and proofs of delivery. 6. On July 30, 2008, the Collins & Aikman Litigation Trust (the "Trust") filed the

Objection, seeking to disallow the Claim in its entirety. Response to Debtors' Books and Records Objection 7. As one reason for disallowance, the Trust asserts that the Debtors' books and

records provide no basis for the Claim. 8. Other than this general assertion, the Trust offers no evidence. Nor did the Trust

include an affidavit of a person with knowledge stating that the Debtors' books and records provide no basis for the Claim. 9. More importantly, the Trust has not contested any of the detailed documentation,

including invoices and proofs of delivery, that Claimant provided in support of the Claim. 10. The Trust's assertion that the Debtors' books and records provide no basis for the

Claim without a supporting affidavit or other evidence is a generic objection which should be denied.

Response to Debtors' 502(d) Objection 11. The Trust also asserts that the Claim should be disallowed under 502(d) of the

Bankruptcy Code. 12. Section 502(d) provides that the court shall disallow any claim of any entity that

is a transferee of a transfer avoidable under 547, unless such transferee has paid to the debtor the amount for which such transferee is liable. 13. However, an entity is not "liable" under 502(d), unless or until a judgment has

been rendered on the underlying transfer under 547 and the entity has refused to pay the adjudicated amount. See Katchen v. Landy, 382 U.S. 323, 330 (1966) (interpreting statutory predecessor to 502(d)); In re Marketing Resources Intern. Corp., 35 B.R. 353, 355 (Bankr. E.D. Pa. 1983); In re Southern Air Transport, Inc., 294 B.R. 293, 295-96 (Bankr. S.D. Ohio 2003); Joseph J. Bassano, et al., Authority to avoid and recover preferences--Liability of transferee; failure to turn over value of preference, 9B Am. Jur. 2d Bankruptcy 2179 (2008). 14. In Adversary Proceeding No. 07-05574, the Trust asserts that Claimant received

recoverable transfers pursuant to 547 or 548 from the Debtors in the amount of $3,917,261.98. Claimant disputes that the amounts are recoverable and asserts that it has

defenses under 547 and 548. 15. The Adversary Proceeding has not been adjudicated and there has been no

determination that Claimant is liable as a transferee of an avoidable transfer under 547 or 548. 16. denied. Thus, disallowance under 502(d) is improper, and the Objection should be

WHEREFORE, Claimant respectfully requests that this Court enter an Order: A. B. C. Denying the Objection; Allowing the Claim in the amount of $1,761,793.38; and Granting such other and further relief as is just. Attorneys for Summit Polymers, Inc. VARNUM, RIDDERING, SCHMIDT & HOWLETT LLP

Dated: August 29, 2008

By:

/s/ Mary Kay Shaver Bryan R. Walters (P-58050) Mary Kay Shaver (P-60411) Business Address: Bridgewater Place P. O. Box 352 Grand Rapids, MI 49501-0352 Telephone: (616) 336-6000 Facsimile: (616) 336-7000

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