In The United States Bankruptcy Court Eastern District of Michigan Southern Division
In The United States Bankruptcy Court Eastern District of Michigan Southern Division
In The United States Bankruptcy Court Eastern District of Michigan Southern Division
et al.1 Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification #13-3489233) Honorable Steven W. Rhodes
AFFIDAVIT OF BILL HOISINGTON IN SUPPORT OF THE DEBTORS MOTION FOR AN ORDER AUTHORIZING DEBTORS TO REJECT CERTAIN EXECUTORY CONTRACTS AND UNEXPIRED LEASES STATE OF MICHIGAN COUNTY OF OAKLAND ) ) ss: )
I, Bill Hoisington, being duly sworn, state the following under penalty of perjury: 1. I am a Director of Engineering Design of Collins & Aikman Products Co.,
The Debtors in the proposed 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. 05-55980; 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. 05-55964; 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.
K&E 10895764.3
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0555927060104000000000017
1A
2.
(collectively, the Debtors) filed a Motion for Entry of an Order Authorizing Debtors to Reject Certain Executory Contracts and Unexpired Leases (the Motion). 3. I am familiar with the India Design and Engineering Center agreement
with Satyam Venture Engineering Services Private Limited (Satyam) listed on Exhibit B to the Motion (the Satyam Contract). 4. Prior to filing the Motion, I examined the terms of the Satyam Contract to
determine the benefits and burdens the contract provides to the Debtors, and I carefully considered and evaluated whether the benefits of the Satyam Contract exceeded the burdens to the Debtors and their estates. 5. In my evaluation of the Satyam Contract, I also considered the advantages
and disadvantages of rejecting such contract. 6. The Debtors primary benefit under the Satyam Contract is the product
design, engineering analysis and CAD/CAM/CAE software customization services the Debtors receive on a daily basis from Satyam. 7. Recently, however, as the Debtors have designed fewer automotive parts,
their need for the services provided under the Satyam Contract has diminished. Consequently, the Debtors have determined it necessary to minimize the personnel and services provided under the Satyam Contract. 8. Even though the Debtors have decreased the personnel and services
provided by the Satyam Contract, the Debtors costs under the Satyam Contract have continued 2
K&E 10895764.3
to increase. In particular, under the Satyam Contract, the Debtors must continue to pay for the services supplied by Satyam personnel even after such personnel discontinue providing services to the Debtors. 9. Additionally, the Debtors are required to pay substantial fees based upon
the number of hours each Satyam employee works (the Hourly Rates). The Hourly Rates charged by Satyam are scheduled to increase by approximately 9% in the forthcoming year. 10. Furthermore, under the terms of the Saytam Contract, the Debtors are
unable to accept a competing proposal for the services currently provided by Satyam from an alternative service provider. Therefore, the Debtors cannot enter into an agreement with an alternative service provider to provide such services on more cost-effective and less burdensome terms. 11. Due to the aforementioned burdens and excessive costs, I determined that
the burdens of the Satyam Contract far exceed any benefit to the Debtors and their estates from the contract. 12. After rejection of the Satyam Contract, the Debtors will be able to enter
into an agreement(s) with an alternative service provider or providers to supply the services currently undertaken by Satyam personnel at a lower total cost and upon less burdensome conditions. 13. The Debtors already have begun discussions with alternative service
providers to supply services that are substantially similar to the services that Satyam currently
3
K&E 10895764.3
provides to the Debtors upon more favorable conditions than the Debtors currently receive under the Satyam Contract. 14. Upon rejection of the Satyam Contract, the Debtors do not presently
intend to solicit or hire any Satyam personnel, unless a new contract is entered into by and among the Debtors and Satyam containing more favorable terms and conditions than those currently set forth under the Satyam Contract.
4
K&E 10895764.3
Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury that the foregoing is true and correct.
/s/ Bill Hoisington Bill Hoisington Collins & Aikman Products Co. 250 Stephenson Highway Troy, Michigan 48083 Subscribed and sworn to before me this 4th day of January, 2006.
/s/ Pamela J. Lourim Pamela J. Lourim Notary Public, Oakland County, MI My Commission Expires: February 11, 2006
K&E 10895764.3
CERTIFICATE OF SERVICE I, Ray Schrock, an attorney, certify that on the 4th day of January, 2006, I caused to be served, by e-mail, facsimile 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 Affidavit of Bill Hoisington in Support of the Debtors Motion for an Order Authorizing Debtors to Reject Certain Executory Contradcts and Unexpired Leases.
K&E 10895371.1
CREDITOR NAME A Freeman Adrian City Hall Alice B Eaton Brendan G Best Bryan Clay Champaign County Collector Chris Kocinski City Of Albemarle 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 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 Jan Steinle 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
Barb Neal Utilities Department 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
Email [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
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CREDITOR NAME Mike Paslay Ministry Of Finance Corp Tax Branch Missouri Dept Of Revenue Municipalite Du Village De Nick Shah Nina Rosete Paul Hoffman Pension Benefit Guaranty Corporation Pension Benefit Guaranty Corporation Peter V Pantaleo Phh Canada Inc Philip Dublin Phoenix Contracting Company R Aurand R J Sidman Ralph E McDowell Ray C Schrock Rick Feinstein Ricoh Canada Inc Robert J Diehl Jr Robert Weiss Ronald A Leggett Ronald R Rose Sarah Eagle Sean P Corcoran Sheryl Toby Stark County Treasurer State Of Michigan State Of Michigan
15663507 Lacolle
Sara Eagle & Gail Perry Sara Eagle & Gail Perry
Collector Of Revenue
State Of Michigan Stephen E Spence Stephen S LaPlante T Pryce Tax Administrator The Corporation Of The Town Thomas Radom Treasurer Of State Tricia Sherick Tyco Capital Inc United Rentals Of Canada Inc Ville De Farnham Voridian Canada Company William C Andrews William G Diehl William J Byrne
Gary D Feigler Treasurer Michigan Dept Of Environmental Quality Environmental Assistance Div Michigan Unemployment Insurance Agency Michigan Dept Of Treasury Collection Div Office of Financial Mgmt Cashiers Office US Trustee
Email [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Service de la Tresorerie
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
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Barb Krzywiecki Dan Thiffault George Tabry Christine Brown Sales & Use Tax Division Lorraine Zinar Holly Matthews Linda King Bruce B Galletly Raymond Soucie
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
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CREDITOR NAME Advanced Composites Inc Akin Gump Strauss Hauer & Feld LLP Assoc Receivables Funding Inc Basell USA Inc Basf Corporation Butzel Long PC Canada Customs & Rev Agency Canada Customs & Rev Agency Charter Township Of Plymouth City Of Barberton City Of Barberton City Of Canton City Of Dover City Of Dover City Of Evart Recreation Dept City Of Fullerton City Of Havre De Grace City Of Los Angeles City Of Phoenix City Of Roxboro City Of Williamston City Treasurer Collector Of Revenue Collins & Aikman Corp DuPont Dykema Gossett PLLC ER Wagner Manufacturing Fisher Automotive Systems Fisher America Inc Freudenberg Nok Inc Ga Dept Of Revenue Ge Capital Ge Capital Ge Capital Ge Capital Comm Serv Astro Dye Highwoods Forsyth Lp Highwoods Forsyth Lp Hnk Michigan Properties IKON Office Solutions Inc Indiana Department Of Revenue Indiana Dept Of Revenue Industrial Development Board Industrial Leasing Company Industrial Truck Sales & Svc Inmet Division of Multimatic Internal Revenue Service Invista IOS Capital Inc ISP Elastomer Janesville Products Keith Milligan Latham & Watkins LLP Lear Corp Manpower Meridian Park Ministre Du Revenu Du Quebec Municipality Of Port Hope North Loop Partners Ltd Pitney Bowes Credit Corp
CREDITOR NOTICE NAME Rob Morgan Michael S Stamer Philip C Dublin Jim Frick Charlie Burrill Thomas B Radom Attn Receiver General International Tax Service Ohio Income Tax City Building Canton Income Tax Dept Wastewater Labroratory
Mary Ellen Hinckle Dept Of Building And Safety Collections Office Tax Department Port Huron Police Department Barbara J Walker Jay B Knoll Susan F Herr Ronald Rose & Brendan Best Gary Torke William Stiefel Director's Office for Taxpayer Services Division
Tim Gorman Laura Kelly David Heller Josef Athanas & Danielle Kemp C Garland Waller
ADDRESS1 1062 S 4th Ave 590 Madison Ave PO Box 16253 7925 Kingsland Dr 1609 Biddle Ave 100 Bloomfield Hills Pkwy Ste 100 1 5 Notre Ave 2204 Walkley Rd PO Box 8040 576 West Pk Ave 576 West Pk Dr PO Box 9951 484 Middle Rd PO Box 818 200 South Main St 303 W Commonwealth Ave 711 Pennington Ave 201 N Figueroa St No 786 Phoenix Police Dept PO Box 128 161 E Grand River 100 Mcmorran 201 N Second St 250 Stephenson Hwy DuPont Legal D 7156 400 Renaissance Center 4611 North 32nd St 1084 Doris Rd 47690 E Anchor Ct PO Box 105499 PO Box 740434 PO Box 640387 PO Box 642444 PO Box 60500 Attn Lease Administration Attn Lease Administration 7255 Crossleigh Court Ste 108 PO Box 9115 100 N Senate Ave PO Box 7218 PO Box 4660 PO Box 1803 PO Box 1807 35 West Milmot St Box 330500 Stop 15 601 S LA Salle St Ste 310 PO Box 9115 PO Box 4346 2700 Patterson Ave 3745 C Us Hwy 80 W Sears Tower Ste 5800 21557 Telegraph Rd 30800 Northwestern Hwy 2707 Meridian Dr 3800 Marly PO Box 117 PO Box 3449 PO Box 85460
ADDRESS2
1007 N Market St
2120 West End Ave Ste 100 3100 Smoketree Ct Ste 600
233 S Wacker Dr
CITY Sidney New York Greenville Raleigh Wyandotte Bloomfield Hills Sudbury Ottawa Plymouth Barberton Barberton Canton Dover Dover Evart Fullerton Havre De Grace Los Angeles Phoenix Roxboro Williamston Port Huron St Charles Troy Wilmington Detroit Milwaukee Auburn Hills Plymouth Atlanta Atlanta Pittsburgh Pittsburgh Charlotte Nashville Raleigh Toledo Macon Indianapolis Indianapolis Montgomery Grand Rapids Durham Richmond Hill Detroit Chicago Macon Houston Grand Rapids Phenix Chicago Southfield Farmington Hills Greenville Ste Foy Port Hope Longview Louisville
STATE OH NY SC NC MI MI ON ON MI OH OH OH NH NH MI CA MD CA AZ NC MI MI MO MI DE MI WI MI MI GA GA PA PA NC TN NC OH GA IN IN AL MI NC ON MI IL GA TX MI AL IL MI MI NC QC ON TX KY
ZIP 453658977 10022 29606 27613-4203 48192 48304 P3A 5C2 K1A 1B1 48170-4394 44203 44203-2584 44711-9951 03820 03820-0818 49631 92632 21078 90012 85003 27573 48895 48060 63301 48083 19898 48243 53209-6023 48326-2613 48170 30348-5499 30374 15264-0387 15264 28260 37203-5223 27604 43617 31208-9115 46204-2253 46207-7218 36103-4660 49501 27702-1807 L4B 1L7 48232 60605-1725 31208-9115 77210 49546 36870 60606 48034 48334 27834 G1X 4A5 L1A 3V9 75606 40285-5460
COUNTRY
Canada Canada
Canada
Canada Canada
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
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CREDITOR NAME PolyOne Corp Prestige Property Tax Special Princeton Properties Qrs 14 Paying Agent Qrs 14 Paying Agent Inc Railroad Drive Lp Receiver General for Canada Receiver General For Canada Receiver General For Canada Receiver General for Canada Revenue Canada Satyam Venture Engineering Svcs Private Ltd Securities and Exchange Commission Simpson Thacher & Bartlett LLP State Of Alabama State of Michigan State Of Michigan State Of Michigan State Of Michigan State Of Michigan Stephen E Spence Summit Property Management Inc Tate Boulevard I Llc Tax Collector Tcs Realty Ltd The Perfect Water Co LLC The Town Of Pageland Tom Heck Truck Service Town Of Farmington Town Of Farmville Town Of Gananoque Town Of Old Fort Town Of Pageland Town Of Troy Tr Associates Treasurer City Of Detroit Uniform Color Co United States Attorney for the Eastern District of Michigan Valeo Inc Vespera Lowell Llc Village Of Holmesville Village Of Rantoul W9 Lws Real Estate Limited Wachtell Lipton Rosen & Katz Wellington Green LLC
Ashoka My Home Chambers Midwest Regional Office Peter Pantaleo Erin Casey & Alice Eaton
State Of Michigan Mc State Secondary Complex Matthew Rick Asst Attorney General Dept Of Commerce & Nat Res US Trustee First Plaza County Of Fresno
Fsia Inc Randy Lueth Attn Civil Division Jerry Dittrich Blue Point Capital Bpv Lowell LLC
ADDRESS1 33587 Walker Rd 1025 King St East 678 Princeton Blvd Church St Station 50 Rockefeller Lobby 2 100 Vesper Executive Pk 700 Leigh Capreol 875 Heron Rd 11 Station St 700 Leigh Capreol Ottawa Technology Centre 1 8 301 306 3rd Fl 175 W Jackson Blvd Ste 90 425 Lexington Ave Department Of Revenue 430 W Allegan St Dept 77833 7150 Harris Dr PO Box 30015 PO Box 30754 PO Box 30004 211 W Fort St Ste 700 24901 Northwestern Hwy 302 1985 Blvd Se PO Box 1192 21 Albert St 51410 Milano Dr Ste 110 126 North Pearl St 1306 E Triumph Dr 356 Main St 115 West Church St 30 King St East PO Box 520 PO Box 67 315 North Main St 200 E Big Beaver PO Box 33525 12003 Toepher Rd 211 W Fort St Ste 2001 3000 University Dr 10 Livingston Pl 2nd Fl 205 Millersburg Rd 333 S Tanner 10101 Claude Freeman Dr Ste 200 N 51 W 52nd St 31100 Telegraph Rd Ste 200
ADDRESS2
PO Box 6529
875 Heron Rd SP Rd
50 N Ripley St
PO Box 2228
PO Box 67
PO Box 100
CITY Avon Lake Cambridge Lowell New York New York Tyngsboro Dorval Ottawa Belleville Dorval Ottawa Secunderabad Chicago New York Montgomery Lansing Detroit Lansing Lansing Lansing Detroit Southfield Hickory Fresno Trenton Macomb Pageland Urbana Farmington Farmville Gananoque Old Fort Pageland Troy Troy Detroit Warren Detroit Auburn Hills Greenwichn Holmesville Rantoul Charlotte New York Bingham Farms
STATE OH ON MA NY NY MA QC ON ON QC ON AP IL NY AL MI MI MI MI MI MI MI NC CA ON MI SC IL NH NC ON NC SC NC MI MI MI MI MI CT OH IL NC NY MI
ZIP 44012 N3H 3P5 01851 10249 10020-1605 01879-2710 H4Y 1G7 K1A 1B1 K8N 2S3 H4Y 1G7 K1A 9Z9 500 03 60604 10017-3954 36104 48918-0001 48277-0833 48909 48909 48909 48226 48075 28602 937151192 K8V 5R1 48042 29728 61802 03835 27828-1621 K7G 2T6 28762 29728 27371 48083 48232 48089-3171 48226 48326-2356 06830 44633 61866 28262-2337 10019 48025
COUNTRY Canada
Canada
Canada
PO Box 113
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
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