UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

In re: COLLINS & AIKMAN CORPORATION. et al.,

Chapter 11 Case No. 05-55927-SWR Jointly Administered Hon. Steven W. Rhodes /

Debtors.

CONDITIONAL OBJECTION OF DOVE STREET INDUSTRIAL LLC, TO CONFIRMATION OF THE FIRST AMENDED JOINT PLAN OF REORGANIZATION Dove Street Industrial L.L.C., (Dove Street Industrial) hereby objects to confirmation of the First Amended Joint Plan of Reorganization (Plan). BACKGROUND AND PROCEDURAL HISTORY 1. On May 17, 2005 (Petition Date), Collins & Aikman Corporation and its debtor

subsidiaries (Debtors) filed their voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code 1101, et. seq. (Bankruptcy Code). 2. Debtors are operating their businesses and managing their properties as debtors-

in-possession pursuant to 1107(a) and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these Chapter 11 cases. 3. This Court has jurisdiction pursuant to 28 U.S.C. 157 and 1334. This is a core

proceeding pursuant to 28 U.S.C. 157(b)(2).

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On February 9, 2007, the Debtors submitted a Disclosure Statement and First

Amended Joint Plan of Reorganization (Amended Plan). 5. Dove Street Industrial and Collins & Aikman Products Co (Collins & Aikman),

one of the Debtors in the above-captioned case, are parties to a Lease Agreement dated April 19, 2002. 6. The Lease Agreement is for an industrial building and addition commonly known

as 2100 Dove Street, Port Huron, Michigan 48060. 7. 8. The Lease Agreement Term is from May 2002 through April 30, 2012. The Lease Agreement requires Collins & Aikman to pay a total base rent of

$7,689,068.00, payable in monthly installments on the first of each month, over the Term of the lease. 9. The Lease Agreement requires Collins & Aikman to pay as additional rent,

property taxes and property assessments as they are received from the landlord or directly from the taxing authority. 10. Collins & Aikman is currently in default of property taxes and assessments

payable during the post-petition period of approximately $59,000.00. 11. Since the Petition Date, Collins & Aikman has continued in possession of the

property, but has not indicated whether it will assume or reject the Lease Agreement. OBJECTIONS TO THE PLAN 12. The Amended Plan is vague and ambiguous with respect to the treatment of the

rights and claims of Dove Street Industrial.

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13.

Article V of the Plan purports to address Dove Street Industrials rights as a party

to an executory contract with Collins & Aikman by providing that Unexpired Leases will be either assumed and assigned or rejected. 14. The Dove Street Industrial Lease Agreement is an unexpired lease. Unexpired

leases to be assumed and assigned by Debtors are listed in Exhibit E of the Plan. Unexpired leases to be rejected are listed in Exhibit F of the Plan. 15. Exhibits E and F of the Plan will be available for review no later than 10 days

before the Confirmation Hearing, which is a date that is after the May 7, 2007 deadline for filing an objection to the Plan. 16. Dove Street Industrial does not know whether the Lease Agreement will be listed

on Exhibit E or Exhibit F of the Plan. Therefore, it is unable to determine whether it opposes or approves of the Plan, and it reserves its rights to raise further objection one the Debtor discloses the Plan Exhibits. 17. The Plan also violates section 1129(a)(1) of the Bankruptcy Code which provides

that the Plan must comply with the applicable provisions of the Bankruptcy Code, in order for the Plan to be confirmed. 18. The broad releases and injunctions in Article XII are unenforceable, for, among

other reasons, the injunction effectively eliminates the setoff rights of creditors without compensation and is contrary to the state law rights of holders of claims preserved by the Bankruptcy Code under Section 553(a).

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WHEREFORE, for the reasons stated above, and others not specifically mentioned herein, Dove Street Industrial respectfully requests that this Court deny the First Amended Joint Plan of Reorganization.

Dated: May 8, 2007

KERR, RUSSELL AND WEBER, PLC

/s/ Laura J. Eisele Laura J. Eisele (P42949) Allison B. Clements (P70467) Attys. for Dove Street Industrial L.L.C. 500 Woodward Avenue, Suite 2500 Detroit, MI 48226

By:

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