UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION - DETROIT IN RE COLLINS & AIKMAN

CORPORATION, Debtor. ___________________________________/

CHAPT ER 11 CASE NO. 05-55927-SWR HON . Steven W. Rhodes

CITICORP D EL-LEASE, INC. D/B/A CITICOR P DEALE R FINANC ES MOTION FOR RELIEF FRO M AUTO M ATIC STAY PURSU ANT TO 11 U.S.C. 362(d)(1)

NOW COMES CitiCorp Del-Lease, Inc. d/b/a CitiCorp Dealer Finance by and through its attorney, Richard A. Green, and for its Motion for Relief from Automatic Stay pursuant to 11 U.S.C. 362 (d) (1) states as follows: 1. On March 12, 2002, Collins & Aikman Corporation (the Debtor) entered into a

Master Equipment Lease Agreement (the Lease) with CitiCorp Del-Lease, Inc. d/b/a CitiCorp Dealer Finance (CitiCorp) whereunder the Debtor agreed to pay monthly rental payments to CitiCorp in exchange for possession and use of equipment as reflected on Equipment Schedules to be appended to and made part of the Lease on delivery of such equipment to the Debtor [a copy of the Lease is attached hereto as Exhibit 1]. 2. In addition to the other terms and conditions, the Lease requires the Debtor to

maintain insurance against risk of loss, damage, theft or destruction to each item of leased equipment, requires the Debtor to pay all taxes and assessments connected with possession and operation of such equipment or to reimburse CitiCorp for the same. 3. On March 13, 2002, CitiCorp and the Debtor entered into an Equipment Leasing

Schedule (Schedule No. 1) under the Lease whereunder the Debtor leased a Caterpillar Model GC25K Lift Truck bearing serial number AT82C07162 (Lift Truck No. 1) from CitiCorp for a thirty-six (36) months in exchange for monthly rental in the amount of $412.93 due and payable by Debtor to CitiCorp on the thirteenth (13th) day of each successive month commencing on March 13, 2002 [a copy of Schedule No. 1 is attached hereto as Exhibit 2]. Schedule No. 1 permits the Debtor to purchase Lift Truck No. 1 at the end of the rental term for its then fair market value [see Exhibit 2]. 1

0W[;%*+

0555927051011000000000004

$c

4.

On March 15, 2002, CitiCorp and the Debtor entered into an Equipment Leasing

Schedule (Schedule No. 2) under the Lease whereunder the Debtor leased a Caterpillar Model GC25K Lift Truck bearing serial number AT82C07158 (Lift Truck No. 2) from CitiCorp for a thirty-six (36) months in exchange for monthly rental in the amount of $412.93 due and payable by Debtor to CitiCorp on the thirteenth (13th ) day of each successive month commencing on March 13, 2002 [a copy of Schedule No. 2 is attached hereto as Exhibit 3]. Schedule No. 2 permits the Debtor to purchase Lift Truck No. 2 at the end of the rental term for its then fair market value [see Exhibit 3]. 5. On March 13, 2002, CitiCorp and the Debtor entered into an Equipment Leasing

Schedule (Schedule No. 3) under the Lease whereunder the Debtor leased a Caterpillar Model GC30K Lift Truck bearing serial number AT83C01755 (Lift Truck No. 3) from CitiCorp for a thirty-six (36) months in exchange for monthly rental in the amount of $484.72 due and payable by Debtor to CitiCorp on the seventh (7th) day of each successive month commencing on March 7, 2002 [a copy of Schedule No. 3 is attached hereto as Exhibit 4]. Schedule No. 3 permits the Debtor to purchase Lift Truck No. 3 at the end of the rental term for its then fair market value [see Exhibit 4]. 6. On March 13, 2002, CitiCorp and the Debtor entered into an Equipment Leasing

Schedule (Schedule No. 4) under the Lease whereunder the Debtor leased a Caterpillar Model GC30K Lift Truck bearing serial number AT83C01690 (Lift Truck No. 4) from CitiCorp for a thirty-six (36) months in exchange for monthly rental in the amount of $484.72 due and payable by Debtor to CitiCorp on the seventh (7th) day of each successive month commencing on March 7, 2002 [a copy of Schedule No. 4 is attached hereto as Exhibit 5]. Schedule No. 4 permits the Debtor to purchase Lift Truck No. 4 at the end of the rental term for its then fair market value [see Exhibit 5]. 7. On May 17, 2005 (the Filing Date), Debtor filed a Petition in Bankruptcy under

Chapter 11 of the U.S. Bankruptcy Code. 8. As of the Filing Date, Debtor was in default under the Lease and Schedule Nos. 1

through 4 (the Schedules) as a result of its failure to make rental payments in the total amount of $4,068.34, including accrued late charges. 9. The terms under the Lease and various Schedules have expired and Debtor is no

longer entitled to possession of the Lift Trucks at issue in this matter. 2

10.

Debtor continues to use and operate Lift Truck Nos. 1 through 4 (the Lift Trucks)

in the course of business under the protection of the automatic stay imposed under 11 U.S.C. 362 (a), subjecting them to wear, tear and diminution in value. 11. 12. 13. Debtor has no equity in the Lift Trucks. CitiCorp is not adequately protected as required under 11 U.S.C. 363 (e). After reasonable inquiry, CitiCorp has determined that other than itself and the

Debtor, no other party claims any interest in the Lift Trucks which are the subject matter of this Motion. 14. As a result of Debtors Bankruptcy Petition and the automatic stay imposed under 11

U.S.C. 362 (a), CitiCorp is unable to exercise its remedies. 15. (1). WHEREFORE, CitiCorp Del-Lease, Inc. d/b/a CitiCorp Dealer Finance respectfully requests that the Court issue an Order Granting Relief from the Automatic Stay for cause including a lack of adequate protection, pursuant to 11 U.S.C. 362 (d) (1) so that CitiCorp Del-Lease, Inc. d/b/a CitiCorp Dealer Finance can obtain possession of and foreclose upon the Lift Trucks in accordance with the default provisions of the Lease and Schedules and the Michigan Uniform Commercial Code. CitiCorp is entitled to relief from the automatic stay pursuant to 11 U.S.C. 362 (d)

DATED: October 10, 2005

RESPECTFULLY SUBMITTED,

/s/ RICHARD A. GREEN (P-36746)

Attorney for CitiCorp Del-Lease, Inc. 30150 North Telegraph, Ste. 444 Bingham Farms, MI 48025 (248) 540-7665

UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION - DETROIT IN RE COLLINS & AIKMAN CORPORATION, Debtor. ___________________________________/
CHAPT ER 11 CASE NO. 05-55927-SWR HON . Steven W. Rhodes

ORDER GRANTING CITICORP DEL-LEASE, INC. RELIEF FROM AUTOMATIC STAY

This matter being before the Court on CitiCorp Del-Lease, Inc. d/b/a CitiCorp Dealer Finances Motion for Relief from the Automatic Stay Pursuant to 11 U.S.C. 362 (d) (1); and, IT IS HEREBY ORDERED that CitiCorp Del-Lease, Inc. is granted relief from the automatic stay. IT IS HEREBY FURTHER ORDERED that CitiCorp Del-Lease, Inc. may take whatever measures are permitted under state law to obtain possession of its collateral from Collins & Aikman Corporation (the Debtor) consisting of the following: a Caterpillar Model GC25K Lift Truck bearing serial number AT82C07162, a Caterpillar Model GC25K Lift Truck bearing serial number AT82C07158, a Caterpillar Model GC30K Lift Truck bearing serial number AT83C01755 and a Caterpillar Model GC30K Lift Truck bearing serial number AT83C01690 (hereinafter collectively referred to as the Lift Trucks) IT IS HEREBY FURTHER ORDERED that CitiCorp Del-Lease, Inc. may, upon obtaining possession of the foregoing Lift Trucks from the Debtor, sell and dispose of the same in accordance with the Master Equipment Lease Agreement between the parties and the Michigan Uniform Commercial Code.

____________________________________ U.S. BANKRUPTCY JUDGE

EXHIBIT A