10000023938

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
FIRST INTERIM FEE APPLICATION OF KZC SERVICES, LLC AND JOHN R. BOKEN FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR RESTRUCTURING SERVICES PROVIDED ON BEHALF OF THE DEBTORS FOR THE PERIOD FROM MAY 17, 2005 THROUGH AUGUST 31, 2005
Name of Applicant: Authorized to Provide Professional Services to: Date of Retention: Date of Entry of Order Authorizing Retention: Interim Fee Period for Which Compensation and Reimbursement is Sought:
KZC Services, LLC and John R. Boken Debtors May 17, 2005 June 9, 2005 May 17, 2005 through August 31, 2005
The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 0555949; 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. 0555952; 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. 0555962; and Wickes Manufacturing Company, Case No. 05-55968.
0W[;%+)
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0555927051109000000000013
-q
Amount of Compensation Requested: Amount of Expense Reimbursement Requested: Total Compensation and Expense Reimbursement Requested: This Is: Blended Rate of Professionals (Including Paraprofessionals) Blended Rate of Professionals (Excluding Paraprofessionals)
$6,324,742.00 $670,095.28 $6,994,837.28 First Interim Fee Application $452.74 $480.51
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IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re: COLLINS & AIKMAN CORPORATION, et al.2 Debtors. ) ) ) ) ) ) ) ) Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) (Tax Identification #13-3489233) Honorable Steven W. Rhodes
FIRST INTERIM FEE APPLICATION OF KZC SERVICES, LLC AND JOHN R. BOKEN FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR RESTRUCTURING SERVICES PROVIDED ON BEHALF OF THE DEBTORS FOR THE PERIOD FROM MAY 17, 2005 THROUGH AUGUST 31, 2005 KZC Services, LLC and John R. Boken (Boken) (collectively, KZCS), in accordance with the terms of the Services Agreement between the above-captioned debtors (the Debtors) and KZCS (the Services Agreement), hereby applies (the First Interim Fee Application) for the entry of an order, substantially in the form of Exhibit A, allowing it: (i) fees in the amount of $6,324,742.00 for the reasonable and necessary restructuring services KZCS has rendered to the Debtors; and (ii) actual and necessary expenses incurred by KZCS in the
The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 0555949; 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. 0555952; 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. 0555962; and Wickes Manufacturing Company, Case No. 05-55968.
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amount of $670,095.28, for the period from May 17, 2005 through August 31, 2005 (the Interim Fee Period), pursuant to Sections 330 and 331 of the Bankruptcy Code, 11 U.S.C. 101-1330 (the Bankruptcy Code), Rules 2016-1 and 9014-1 of the Local Bankruptcy Rules for the Eastern District of Michigan, Rule 2016 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules), the Retention Order, as defined below, and the Order Granting Motion to Establish Procedures for Monthly Compensation and Reimbursement of Expenses for Professionals and Official Committee Members [Docket No. 290] (the Interim Compensation Order). In support of this First Interim Fee Application, KZCS respectfully states as follows. Background 1. On May 17, 2005 (the Petition Date), the Debtors filed petitions for
relief under the Bankruptcy Code and commenced the above-captioned Chapter 11 cases (the Chapter 11 Cases). The Debtors continue to operate their businesses and manage their
properties as debtors and debtors in possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code. 2. On May 24, 2005, the United States trustee (the UST) appointed an
official committee of unsecured creditors (the Committee). No trustee or examiner has been appointed in the chapter 11 cases. 3. The Debtors and their non-debtor affiliates are leading suppliers of
automotive components, systems and modules to all of the worlds largest vehicle manufacturers, including DaimlerChrysler AG, Ford Motor Company, General Motors Corporation, Honda Motor Company, Inc., Nissan Motor Company Unlimited and Toyota SA. Retention of and Continuing Disinterestedness of KZCS 4. By this Courts order dated June 9, 2005 (the Retention Order), the
Debtors were authorized to retain KZCS under the terms of the Services Agreement, as amended
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by the Retention Order, to provide restructuring services, with Boken serving in the capacity of Chief Restructuring Officer, effective as of the Petition Date. The Retention Order authorizes the Debtor to compensate KZCS at KZCSs hourly rates charged for services of the type contemplated in these Chapter 11 Cases and to reimburse KZCS for actual and necessary out-ofpocket expenses and direct costs incurred, subject to application to this Court in accordance with applicable law. A copy of the Retention Order is attached as Exhibit B to this First Interim Fee Application. 5. KZCS does not hold or represent any interest adverse to the Debtors
estates, and is a disinterested person as that term is defined in Section 101(14) of the Bankruptcy Code as modified by Section 1107(b) of the Bankruptcy Code. 6. KZCS may have in the past represented, may currently represent, and
likely in the future will represent parties-in-interest in connection with matters unrelated to the Debtors and the Chapter 11 Cases. KZCS disclosed its connections to parties-in-interest that it has been able to ascertain using its reasonable efforts in prior affidavits. KZCS will update those Affidavits when necessary and as appropriate. 7. KZCS performed the services for which it is seeking compensation on
behalf of or for the Debtors and their estates, and not on behalf of any committee, creditor or other entity. 8. Except to the extent of the advance payments paid to KZCS that KZCS
previously disclosed to this Court in the Affidavits, KZCS has received no payment and no promises for payment from any source for services rendered or to be rendered in any capacity whatsoever in connection with the Chapter 11 Cases.
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9.
Pursuant to Bankruptcy Rule 2016(b), KZCS has not shared, nor has
KZCS agreed to share: (a) any compensation it has received or may receive with another party or person other than with the partners, counsel and associates of KZCS; or (b) any compensation another person or party has received or may receive. 10. This is the first interim fee application that KZCS has submitted in the
Chapter 11 Cases. In accordance with the terms of the Interim Compensation Order, KZCS has served monthly fee statements (collectively, the Monthly Fee Statements) on the Debtors, the UST, counsel to the Committee, counsel to the pre-petition secured lenders and counsel to the post-petition DIP lenders for the following periods encompassing, in the aggregate, the entirety of the Interim Fee Period: (a) (b) (c) (d) 11. May 17, 2005 through May 31, 2005; June 1, 2005 through June 30, 2005; July 1, 2005 through July 31, 2005; and August 1, 2005 through August 31, 2005.
In accordance with the Retention Order, the Monthly Fee Statements
include daily time logs by professional and paraprofessional that provide information regarding the principal daily activities of each KZCS individual providing services on behalf of the Debtors during the billing period. Per the Retention Order, KZCS was not required to either: (a) keep time entries in increments of tenths of an hour; or (b) prepare separate time entries for each service performed each day (i.e., daily time descriptions could be lumped together in a single summary). 12. Attached as Exhibits C-1 through C-4 of this First Interim Fee Application
are full and complete copies of the Monthly Fee Statements.
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13.
With respect to the Monthly Fee Statements, to date KZCS has received
$5,729,888.88 from the Debtors for fees and expenses incurred by KZCS during the Interim Fee Period in accordance with the compensation procedures outlined in the Interim Compensation Order. This represents 80 percent of the fees and 100 percent of the expenses incurred and submitted by KZCS in the Monthly Fee Statements. 14. On July 7, 2005, Stephen Cooper (Cooper) and Leonard LoBiondo
(LoBiondo) were appointed to the Board of Directors of Collins & Aikman Corporation, (the Board). Cooper is an Executive Managing Director and LoBiondo is a Senior Managing Director of Kroll Zolfo Cooper LLC, an affiliate of KZCS, and Cooper and LoBiondo are two of the three members of KZCS. Prior to their appointment to the Board, Cooper and LoBiondo provided services on behalf of the Debtors under the terms of the Services Agreement. The fees and expenses incurred by Cooper and LoBiondo prior to their appointment to the Board were included in the Monthly Fee Statements in the appropriate periods and are aggregated with all other KZCS fees and expenses in this First Interim Fee Application. Pursuant to an agreement reached between and amongst KZCS, the Debtors and the UST, as approved by this Court on July 18, 2005, the fees and expenses incurred by Cooper and LoBiondo in their capacity as members of the Board are not included for review and approval in connection with this or any subsequent fee application in the Chapter 11 Cases. Reasonable and Necessary Services Rendered by KZCS - General 15. KZCS provided a broad range of management and restructuring services
on behalf of the Debtors during the Interim Fee Period. The activities of and services performed by KZCS during the Interim Fee Period, as described in this First Interim Fee Application, were consistent with the duties and responsibilities of KZCS as outlined in the Services Agreement.
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16.
During the Interim Fee Period, KZCS professionals and paraprofessionals
expended a total of 13,969.8 hours in performing the services outlined herein on behalf of the Debtors. Based on the KZCS hourly rates for services of the type provided during the Interim Fee Period, and the services performed by each individual, the total reasonable value of such services is $6,324,742.00. 17. In accordance with the factors enumerated in Section 330 of the
Bankruptcy Code, the amount of fees requested is fair and reasonable given: (a) the complexity of the Chapter 11 Cases; (b) the time expended; (c) the nature and extent of the services rendered; (d) the value of such services; and (e) the costs of comparable services other than in a case under the Bankruptcy Code. See, e.g., In re Moss, 320 B.R. 143, 156-57 (Bankr. E.D. Mich. 2005); In re Ray, 314 B.R. 643, 662-63 (Bankr. M.D. Tenn. 2004); In re Chary, 201 B.R. 783, 787-88 (Bankr. W.D. Tenn. 1996). 18. Attached as Exhibit D to this First Interim Fee Application is a schedule
listing the KZCS professionals and paraprofessionals who rendered professional services in the Chapter 11 Cases during the Interim Fee Period, the hours incurred by month by individual during the Interim Fee Period and the aggregate fees by individual for the Interim Fee Period based on that individuals hourly billing rate. 19. Attached as Exhibit E to this First Interim Fee Application are brief
biographical profiles of the KZCS professionals who provided services on behalf of the Debtors during the Interim Fee Period. Reasonable and Necessary Services Rendered by KZCS - Summary 20. As has been articulated in numerous pleadings and Court hearings in the
Chapter 11 Cases, the Debtors cases are exceedingly complex and challenging from a financial,
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operational and legal perspective.
At the outset of the Chapter 11 Cases, there was an
extraordinary degree of concern and uncertainty as to both the Debtors immediate future and potential creditor recoveries. The fact that the Debtors retained their professionals only a few days before having to file what, at that time, was the largest chapter 11 filing of 2005 in terms of book value of assets, was indicative of, among other things, the severe liquidity crisis, operational dysfunction and management deficiencies faced by the Debtors. 21. crisis. KZCS assumed its role and responsibilities in the midst of this emerging
The severity of the situation necessitated that KZCS perform a broad range of
management and restructuring services designed, in the immediate term, to: (i) reasonably stabilize the existing environment; (ii) prevent immediate and permanent diminution of enterprise value; and (iii) create an opportunity to develop restructuring alternatives that would maximize creditor recoveries. The nature and substance of the services that KZCS provided during the Interim Fee Period were consistent with KZCSs duties and responsibilities as outlined in the Services Agreement. Furthermore, the scope and depth of the services provided by KZCS were necessitated by, among other factors, the magnitude of the liquidity crisis, limitations of the Debtors management team and support resources (particularly in accounting and finance), the fundamental problems with the Debtors business model and the adversarial environment that was created by the exigent circumstances of the Debtors situation. 22. For purposes of summarizing, in this First Interim Fee Application, the
services provided and the activities performed by KZCS during the Interim Fee Period, KZCS identified the following categories (each, a Service Category) as representing the primary areas of KZCSs responsibilities and involvement: (a) Financial Forecasting;
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(b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) 23.
Cash and Liquidity Management; DIP Financing and Customer Funding; Vendor Management; Pre-Petition Receivables; Strategic and Business Planning; Contract Pricing; Customer Negotiations; Capital Expenditures, Launch and Tooling; Financial Reporting and Chapter 11 Compliance; European Operations and Strategy; General Management; Corporate Governance; Creditor Communications; Bankruptcy Court Hearings; and Case Administration and Management.
Paragraphs 24 through 39 herein provide descriptions of the principal
activities performed by, and the key accomplishments of, KZCS under each Service Category outlined in Paragraph 22 during the Interim Fee Period. Supplemental information regarding the specific activities of individual KZCS professionals and paraprofessionals during the Interim Fee Period is located in the daily time log detail that supports, and is a part of, the Monthly Fee Statements at Exhibits C-1 through C-4 of this First Interim Fee Application.
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24.
Financial Forecasting KZCSs principal activities and accomplishments under this Service
Category during the Interim Fee Period were as follows: (a) established procedures and led process for development of short-
term (13 week) cash flow forecasts and supporting assumptions; (b) established procedures and led process for development of detailed
two year financial forecast (June 2005 through May 2007) on a plant-by-plant basis, including income statement and balance sheet; and (c) performed scenario analyses utilizing short-term cash flow
modeling tools to assess impact of variations in principal assumptions, measure potential liquidity risks and estimate near-term funding needs. 25. Cash and Liquidity Management KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) developed daily liquidity report to facilitate assessment of current
and forecasted liquidity position and identification of strategies to maintain sufficient liquidity to avoid potential interruptions in operations; (b) established processes for requesting and accessing funds made
available through various post-petition financing and funding mechanisms; (c) established procedures for gathering and validating data relating to
daily cash activities and assumed responsibility for developing and managing database of detailed daily cash receipts and disbursements information;
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(d)
designed, developed and produced weekly actual to forecast cash
flow reports to allow for ongoing, timely assessment of cash flow performance; (e) developed processes for investigating significant variances from
forecasted cash flow performance and assumed responsibility for identifying and implementing strategies for corrective action; (f) established and led daily cash disbursement meeting to broaden
understanding of liquidity constraints and improve management of daily cash position; (g) authorizations; (h) managed post-petition receivables portfolio on daily basis to designed and implemented enhanced controls over expenditure
ensure that all customers were remitting funds within standard or modified terms and led process of initiating action in instances where post-petition customer receivables were outside of agreedupon terms; and (i) established priorities and enhanced customer payment application
processes to minimize magnitude of, and risks associated with, unapplied cash receipts. 26. DIP Financing and Customer Funding KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) negotiated terms and conditions of $150 million super-priority DIP
financing package and led process to obtain Committee and Court approval of arrangement; (b) structured, prepared and led management presentations in
connection with supporting JPMorgan effort to attract participants to DIP financing package;
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(c)
monitored liquidity position and cash flow performance in relation
to DIP financing covenants, prepared required weekly reports for delivery to agent and prepared documentation necessary to support weekly financial officer representations and certifications; (d) negotiated terms and conditions of $30 million administrative
priority financing from consortium of primary customers (Customer Group) and led process to obtain Court approval of arrangement; and (e) negotiated terms and conditions of $165 million combination
subordinated financing and pricing surcharge package from Customer Group and led process to obtain Court approval of arrangement. 27. Vendor Management KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) provided guidance to purchasing personnel with respect to
addressing vendor questions and issues relating to pre-petition claims; (b) provided guidance to purchasing personnel regarding parameters
for negotiating terms with vendors for post-petition shipments; (c) structured and implemented process for accumulating and
addressing vendor reclamation claims; (d) assisted in negotiating financial arrangements, including credit
terms, with critical vendors to ensure continued flow of materials necessary to maintain production schedules; (e) structured and led daily vendor management meeting to prioritize
and systematically resolve post-petition inventory supply and vendor issues; and
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(f)
assisted purchasing personnel in addressing periodic issues critical
to improving overall vendor relationships. 28. Pre-Petition Receivables KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) organized resources and led due diligence process to evaluate pre-
petition receivables portfolio, pledged as collateral for pre-petition financing arrangement, to assess realizability and timing for potential recovery on residual book value of portfolio; (b) identified apparent instances of accounting irregularities relating to
creation of pre-petition receivables and developed procedures for preventing similar occurrences on post-petition basis; (c) investigated scope of apparent pre-petition accounting
irregularities for purposes of reassessing magnitude and timing on residual portion of pre-petition receivables portfolio; (d) organized resources and structured process to ensure concentrated
effort on collection of pre-petition receivables to: (i) ensure fulfillment of collection responsibilities under pre-petition receivables financing arrangement; (ii) facilitate timely pay down of remaining balance owed under pre-petition receivables financing; and (iii) maximize prospects for residual recovery to Debtors; (e) facilitated and supported extensive due diligence process and
monitoring requirements of advisors to pre-petition receivables lender; and
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(f)
designed and implemented reconciliation process with pre-petition
receivables lender to provide for timely reimbursement of misdirected payments relating to either pre-petition or post-petition receivables. 29. Strategic and Business Planning KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) performed preliminary assessment of Debtors business model and
identified specific viability challenges for purposes of developing initial turnaround and restructuring strategies; (b) developed and implemented broad range of immediate action steps
deemed necessary to stabilize environment, preserve enterprise value and provide time and opportunity to enhance value and creditor recoveries; (c) participated in regular, weekly senior management meetings and
frequent smaller group meetings to discuss operational challenges, opportunities for improvement of operating performance and a broad range of strategic, operational and financial issues; (d) participated in structuring and implementing formal strategic
planning process with Debtors senior management; (e) provided assistance and support to the Debtors personnel in
performing research and detailed analyses regarding the Debtors perceived strategic advantages and relative strengths and weaknesses; (f) evaluated all of the Debtors business units and assets for purposes
of identifying core and non-core operations;
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(g)
assisted in researching and analyzing cost reduction opportunities
in areas of raw material usage and costs, purchased parts, labor rates and productivity, plant and equipment leases, plant and corporate overhead and other key cost areas; (h) provided assistance and support to the Debtors personnel in
performing research and analyses regarding plant closure and consolidation alternatives; (i) assisted in drafting and refining the Debtors Strategic Plan report,
which was distributed to key stakeholders on or about September 1, 2005; (j) continually re-evaluated and revised immediate action steps
deemed necessary to enhance financial stability, improve operating performance and maximize value of enterprise; (k) initiated process of strategizing regarding various balance sheet
restructuring and reorganization alternatives and assessing viability of potential options; and (l) initiated process of preparing for potential sale transactions of
entire enterprise or selected business units. 30. Contract Pricing KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) designed and developed process for assessing program and
contract profitability for purposes of identifying contracts for potential rejection or renegotiation; (b) developed detailed analyses of bills of material and key cost
components relating to significant unfavorably priced contracts to facilitate initial discussions with principal customers on desired price relief;
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(c)
assisted the Debtors personnel in identifying and evaluating
market pricing parameters for selected products for use in negotiations with customers on adjusting unfavorably priced contracts to fair and reasonable pricing; (d) performed sensitivity analyses to quantify potential impact of
various price relief alternatives on margin percentages and projected cash flows; (e) evaluated raw materials costs and historical price fluctuations in
connection with assessing potential price relief requests and potential raw material cost indexing possibilities; (f) analyzed pricing on post-production service parts in connection
with developing revised pricing proposal for discussion with customers; (g) organized and led initial meetings with customer representatives to
review contract costs and pricing for those contracts identified for potential renegotiation; and (h) initiated negotiations with customers regarding potential contract
pricing adjustments and other price relief features. 31. Customer Negotiations KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) led daily interaction with the financial advisors and representatives
of certain customers regarding wide variety of financial and operating issues; (b) led team in structuring of $30 million administrative priority
financing from the Customer Group; (c) led team in extensive negotiations with the Customer Group
relating to $165 million combination subordinated financing and pricing surcharge funding;
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(d)
led team in negotiating protocol for customer advance funding of
capital expenditure, launch and tooling costs; and (e) assisted customer relationship managers in frequent negotiations
with customer representatives on wide variety of commercial issues. 32. Capital Expenditures, Launch and Tooling KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) coordinated and negotiated with third-party tooling vendors
regarding payment terms and tool release requirements; (b) assisted in development of budgets by program for anticipated
capital expenditure, launch and tooling costs; (c) designed protocol for customer advance funding of capital
expenditure, launch and tooling costs; (d) prepared and submitted requests for customer advance funding
under capital expenditure, launch and tooling protocol; (e) addressed and resolved questions of customer representatives
relating to requests for customer advance funding under capital expenditure, launch and tooling protocol; (f) acknowledgment; (g) established procedures for segregation of receipts from customer reviewed and approved customer funding authorization and
advance fundings, developed controls to ensure matching of disbursements with customer funding authorizations and monitored disbursement process;
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(h)
developed and managed databases detailing customer advance
fundings under capital expenditure, launch and tooling protocol and disbursement activity from segregated customer accounts; and (i) designed and produced reports summarizing status of customer
advance fundings under capital expenditure, launch and tooling protocol and detailing disbursement activity from segregated customer accounts. 33. Financial Reporting and Chapter 11 Compliance KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) developed and implemented accounting procedures to ensure
adequate segregation of pre-petition and post-petition activity and balances within the Debtors books and records; (b) developed procedures and organized resources to gather, analyze
and summarize asset, liability and other financial information necessary to ensure timely compliance with ongoing United States Trustee and Bankruptcy Court filing requirements; (c) assisted in accumulation and validation of data necessary to
prepare Schedule of Assets and Liabilities and Statement of Financial Affairs filed on August 12, 2005, for each of the Debtors; (d) organized and coordination preparation of initial detailed Monthly
Operating Report filed on July 25, 2005, for all of the Debtors for the period from May 17, 2005 through June 30, 2005;
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(e)
organized and coordinated preparation of detailed Monthly
Operating Report filed on August 26, 2005, for all of the Debtors for the period from July 1, 2005; (f) examined and analyzed pre-petition balance sheet accounts for
purposes of identifying potential liquidity enhancement opportunities and resolving various general ledger reconciliation issues; (g) assisted in preparation of internal monthly financial statements,
analysis of operating performance and presentation of results to senior management; (h) books and records; and (i) assisted in drafting and preparation of various filings with the refined and restructured procedures for month-end closing of
Securities and Exchange Commission. 34. European Operations and Strategy KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows:3 (a) designed and implemented comprehensive procedures for
forecasting and managing cash across the Debtors European entities; (b) accumulated and analyzed operating budgets, cash flow forecasts,
balance sheets and capital requirements for each of the Debtors European entities to assess viability and evaluate potential insolvency issues;
3
All direct management and advisory services performed by KZCS on behalf of the Debtors in relation to the Debtors European operations were provided prior to the initiation of the insolvency proceedings of the Debtors European entities on July 15, 2005. Once the Debtors European entities were in Administration, the Debtors no longer had authority to manage or control those assets. The services that KZCS provided to the Debtors relating to the European entities in Administration after the initiation of the proceeding related only to managing the Debtors position as a significant creditor in the European Administration process.
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(c)
participated with the Debtors restructuring counsel and investment
bankers in identifying and evaluating alternatives with the Debtors European assets; (d) participated in meetings with the Managing Directors of the
Debtors European entities to evaluate facts and circumstances, assess alternatives and develop strategies for managing risks related to the Debtors European assets; (e) developed European restructuring proposals for discussion with
principal customers and engaged in related negotiations in an effort to try to avoid insolvency proceedings; (f) assisted in development of contingency plan to facilitate controlled
initiation of insolvency proceedings relating to the Debtors European entities; (g) participated in meetings with the Debtors restructuring counsel to
outline process for managing the Debtors position with respect to the European insolvency proceedings, develop protocol for communicating and obtaining information from the Administrator appointed in the European insolvency proceedings (the Administrator) and design strategies for monitoring the Administrators activities and motivating the Administrator to take aggressive approach to maximizing creditor recoveries; and (h) participated in conference calls and in-person meetings with the
Administrator to understand the Administrators strategy with respect to maximizing creditor recoveries and to monitor status and progress. 35. General Management KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows:
19
K&E 10812724.3
(a)
assisted the Debtors personnel in all principal departments in day-
to-day management of assets and operations; (b) resource needs; (c) assisted in interviews and assessments of candidates for key senior assisted in evaluation of management personnel and assessment of
and middle management positions in connection with strategic objective to upgrade overall quality and depth of management team; (d) retention programs; (e) participated in meetings with and presentations to employees designed and negotiated management incentive and employee
regarding the chapter 11 filings, restructuring strategies and status updates; and (f) communications materials. 36. Corporate Governance KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) consulted with the Debtors management personnel on daily basis assisted in drafting and review of press releases and internal
and provided related support with respect to ordinary course finance, operations, personnel and other management decisions; (b) prepared analyses and related materials for distribution to the
Board for informational purposes, to facilitate understanding of critical issues, to update on status of various key initiatives and to support Board oversight and decision making processes;
20
K&E 10812724.3
(c)
developed agendas for and participated in conference call meetings
of the Restructuring Committee of the Board; (d) and in-person meetings; and (e) apprised and updated the Board on regular basis as to scope and developed agendas for and participated in Board conference calls
depth of ongoing activities of KZCS and other outside professionals. 37. Creditor Communications KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) structured processes to satisfy, both initially and on ongoing basis,
extensive due diligence and information requirements of legal and financial advisors to prepetition secured lenders, post-petition DIP lenders and the Committee; (b) established on-site locations and access for financial advisors to
the pre-petition secured lenders, post-petition DIP lenders and Committee to facilitate daily access to information; (c) developed various protocols with representatives of various
constituencies to ensure efficient and timely response to information and meeting requests; (d) organized, structured and developed presentations for regular
conference calls and in-person meetings with representatives of and advisors to the pre-petition secured lenders, post-petition DIP lenders and Committee; (e) organized and structured periodic meetings between the Debtors
personnel and financial advisors to the pre-petition secured lenders, post-petition DIP lenders and Committee;
21
K&E 10812724.3
(f)
organized and developed materials for and led presentation at the
initial section 341 meeting of creditors; and (g) maintained daily ad hoc communications with financial advisors
to various creditor constituencies. 38. Bankruptcy Court Hearings KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) served as primary testimony resource with respect to both
contested and uncontested matters, providing deposition and Court testimony on numerous occasions on broad range of issues relating to Debtors viability, performance, strategy and proposed financing and funding arrangements; (b) prepared for and attended Court hearings relating to the Debtors
cases, assisting the Debtors restructuring counsel in resolving questions raised by Judge and other parties to allow for prompt clarification of facts and resolution of potential disputed points; and (c) assisted the Debtors restructuring counsel in assessing case
developments and upcoming issues and in scheduling hearing dates consistent with timing needs for Court approval of the Debtors requests for relief. 39. Case Administration and Management KZCSs principal activities and accomplishments under this Service Category during the Interim Fee Period were as follows: (a) served as principal liaison and resource for the Debtors
restructuring counsel relating to operations, financing, personnel and other management issues;
22
K&E 10812724.3
(b)
reviewed and provided input to the Debtors restructuring counsel
regarding the Debtors pleadings, responses and other Court filings; (c) drafted and/or revised affidavits in support of various pleadings,
responses and other Court filings; (d) structured and led daily conference call with Debtor professionals
to facilitate coordination and communication, monitor critical issues, develop strategies, assign responsibilities, establish priorities and ensure efficient management of resources and professional costs; and (e) established and implemented procedures to ensure the Debtors
complied with various Court orders. Actual and Necessary Expenses 40. Attached as Exhibit F to this First Interim Fee Application is a summary
of the out-of-expenses and direct costs incurred by KZCS during the Interim Fee Period for which reimbursement is sought. KZCSs request for reimbursement of out-of-pocket expenses and direct costs incurred during the Interim Fee Period totals $670,095.28. 41. It is KZCSs policy to charge its clients in all areas of practice for
identifiable, non-overhead expenses incurred in connection with the Chapter 11 Cases that would not have been incurred except for representation of that particular client. It is KZCSs policy to generally charge its clients the amount incurred by KZCS in connection with such items. Examples of such expenses are postage, overnight mail, courier delivery, computer assisted legal research, photocopying, out-going facsimile transmissions, airfare and lodging. With respect to airfare expenses, all travel, by all individuals, is billed at the coach class rate with the allowance of class upgrades.
23
K&E 10812724.3
Representations 42. This First Interim Fee Application is KZCSs first summary fee
application pursuant to the Interim Compensation Order, covering the period from May 17, 2005 through August 31, 2005. Although every effort has been made to include all fees and expenses from the Interim Fee Period in this First Interim Fee Application, some fees and expenses from the Interim Fee Period might not be included due to delays caused by accounting and processing procedures. KZCS reserves the right to make further application to the Court for allowance of additional fees and expenses incurred during the Interim Fee Period, but not included herein. 43. The total time spent by KZC during the Interim Fee Period was 13,969.8
hours, including 13,046.5 professional hours and 923.3 paraprofessional hours, which represents fees of $6,324,742.00. The average hourly rate for the services rendered was $452.74. 44. KZCS incurred out-of-pocket expenses and direct costs in the amount of
$670,095.28 during the Interim Fee Period and requests reimbursement thereof. 45. In summary, by this First Interim Fee Application, KZCS requests
allowance and payment of fees and expenses in the total amount of $6,994,837.28, consisting of: (i) $6,324,742.00 for the actual, reasonable and necessary professional services rendered by KZCS on behalf of the Debtors (representing 100 percent of fees for services rendered, including the 20 percent previously held back pursuant to the Interim Compensation Order); and (ii) $670,095.28 for actual and necessary costs and expenses (representing 100 percent of the expenses incurred). KZCS understands that Kirkland & Ellis LLP (K&E) has explained to the Office of the United States Trustee that the professionals retained in this case are requesting approval for payment of 100 percent of fees (including the 20 percent held back). KZCS further understands that the Office of the United States Trustee had no objection and pointed K&E to certain cases where this procedure was followed. Moreover, as KZCS continues to represent the
24
K&E 10812724.3
Debtors throughout these Chapter 11 Cases, there will continue to be certain earned fees for which KZCS has not been paid, including fees for which a Monthly Fee Statement has not been submitted and for the 20 percent holdback for those Monthly Fee Statements for which an interim fee application has not been submitted or is still subject to objection. At the time of filing the First Interim Fee Application, KZCS had not been paid the 20 percent holdback for September 2005 or any fees or expenses for October and November 2005. Accordingly, the estates will remain protected should the Court grant KZCS request for payment of the holdback. WHEREFORE, KZCS respectfully requests the entry of an order, substantially in the form attached hereto as Exhibit A, (a) allowing an administrative expense claim for KZCSs compensation and reimbursement for its fees and expenses incurred during the Interim Fee Period, (b) authorizing and directing payment of such amounts and (c) granting such other and further relief as is just and proper.
Dated: November 9, 2005
KZC SERVICES, LLC AND JOHN R. BOKEN /s/ John R. Boken John R. Boken KZC Services, LLC 101 Eisenhower Parkway 3rd Floor Roseland, New Jersey, 07068
25
K&E 10812724.3
EXHIBIT A
ORDER GRANTING FIRST INTERIM FEE APPLICATION OF KZC SERVICES, LLC AND JOHN R. BOKEN FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR RESTRUCTURING SERVICES PROVIDED ON BEHALF OF THE DEBTORS FOR THE PERIOD FROM MAY 1, 2005 THROUGH AUGUST 31, 2005 Upon the first interim fee application (the First Interim Fee Application)2 of KZC Services, LLC and John R. Boken (collectively KZCS) for compensation and reimbursement of expenses for restructuring services rendered on behalf of the debtors for the period from May 17, 2005 through August 31, 2005; it appearing that the relief requested is in the best
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. 0555991; 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. 0555964; 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. Capitalized terms but not otherwise defined herein shall have the meanings set forth in the Interim Fee Application.
K&E 10812726.2
interest of the Debtors estates, their creditors and other parties in interest; it appearing that the Court has jurisdiction over this First Interim Fee Application pursuant to 28 U.S.C. 157 and 1334; it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this proceeding and this First Interim Fee Application in this District is proper pursuant to 28 U.S.C. 1408 and 1409; notice of this First Interim Fee Application and the opportunity for a hearing on this First Interim Fee Application was appropriate under the particular circumstances and that no other or further notice need by given; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED 1. 2. The First Interim Fee Application is granted in its entirety, on an interim basis. The Court allows an administrative expense claim for KZCS in the amount of
$6,324,742.00 for necessary professional services rendered and $670,084.49 for expenses incurred during the Interim Fee Period. 3. The Debtors are hereby authorized and directed to pay the outstanding amount of
the sums described in paragraph 2 hereof representing 100% of the unpaid fees (including the 20% previously held back pursuant to the Interim Compensation Order) and 100% of the unpaid expenses for the period from May 17, 2005 through August 31, 2005. 4. The Debtors are authorized to take all actions necessary to effectuate the relief
granted pursuant to this Order in accordance with the Application. 5. The terms and conditions of this Order shall be immediately effective and
enforceable upon its entry.
2
K&E 10812726.2
6.
The Court retains jurisdiction with respect to all matters arising from or related to
the implementation of this Order.
Dated: __________________, 2005 United States Bankruptcy Judge
3
K&E 10812726.2
NOTICE AND OPPORTUNITY TO RESPOND TO THE FIRST INTERIM FEE APPLICATION OF KZC SERVICES, LLC AND JOHN R. BOKEN FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR RESTRUCTURING SERVICES PROVIDED ON BEHALF OF THE DEBTORS FOR THE PERIOD FROM MAY 17, 2005 THROUGH AUGUST 31, 2005 PLEASE TAKE NOTICE THAT KZC Services, LLC and John R. Boken has filed the First Interim Fee Application of KZC Services, LLC and John R. Boken for Compensation and Reimbursement of Expenses for Restructuring Services Provided on Behalf of the Debtors for the Period from May 17, 2005 through August 31, 2005 (the Application) pursuant to the Administrative Order Establishing Procedures for Monthly Compensation and
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. 0555991; 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. 0555964; 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 10811961.2
Reimbursement of Expenses for Professionals and Official Committee Members dated June 9, 2005 [Docket No. 290] (the Compensation Procedures Order). PLEASE TAKE FURTHER NOTICE THAT your rights may be affected. You may wish to review the Application and discuss it with your attorney, if you have one in these cases. (If you do not have an attorney, you may wish to consult one.) PLEASE TAKE FURTHER NOTICE THAT in accordance with the Compensation Procedures Order, if you wish to object to the Court granting the relief sought in the Application, or if you want the Court to otherwise consider your views on the Application, no later than November 24, 2005 at 4:00 p.m. prevailing Eastern Time, or such shorter time as the Court may hereafter order and of which you may receive subsequent notice, you or your attorney must file with the Court a written response, explaining your position at:2 United States Bankruptcy Court 211 West Fort Street, Suite 2100 Detroit, Michigan 48226 PLEASE TAKE FURTHER NOTICE THAT if you mail your response to the Court for filing, you must mail it early enough so the Court will receive it on or before the date above. PLEASE TAKE FURTHER NOTICE THAT you must also serve the documents so that they are received on or before November 24, 2005 at 4:00 p.m. prevailing Eastern Time, in accordance with the Compensation Procedures Order, including to:
Response or answer must comply with Rule 8(b), (c) and (e) of the Federal Rules of Civil Procedure.
2
K&E 10811961.2
John R. Boken KZC Services, LLC 101 Eisenhower Parkway 3rd Floor Roseland, New Jersey, 07068 PLEASE TAKE FURTHER NOTICE THAT if no responses to the Application are timely filed and served, the Court may grant the Application and enter the order without a hearing as set forth in Rule 2016-3 of the Local Rules for the United States Bankruptcy Court for the Eastern District of Michigan. Dated: November 9, 2005 KIRKLAND & ELLIS LLP /s/ Marc J. Carmel Richard M. Cieri (NY RC 6062) Citigroup Center 153 East 53rd Street New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 -andDavid L. Eaton (IL 3122303) Ray C. Schrock (IL 6257005) Marc J. Carmel (IL 6272032) 200 East Randolph Drive Chicago, Illinois 60601 Telephone: (312) 861-2000 Facsimile: (312) 861-2200 -andCARSON FISCHER, P.L.C. Joseph M. Fischer (P13452) 300 East Maple Road, Third Floor Birmingham, Michigan 48009 Telephone: (248) 644-4840 Facsimile: (248) 644-1832 Co-Counsel for the Debtors
3
K&E 10811961.2
CERTIFICATE OF SERVICE I, Marc Carmel, an attorney, certify that on the 9th day of November, 2005, I caused to be served, by e-mail (to parties who have provided a valid e-mail address) and that on the 10th day of November, 2005, I will cause to be served by first class mail (to all parties who have not provided a valid e-mail address), a true and correct copy of the foregoing First Interim Fee Application of KZC Services, LLC and John R. Boken for Compensation and Reimbursement of Expenses for Restructuring Services Provided on Behalf of the Debtors for the Period from May 17, 2005 to August 31, 2005 on the parties on the attached service list. Dated: November 9, 2005 /s/ Marc J. Carmel Marc J. Carmel
K&E 10812192.3
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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 Los Angeles 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 Earle I Erman Erin M Casey Frank Gorman Gail Perry Gatx Logistics Inc Ge Capital 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 Gottsponer K Schultz Kim Stagg Kimberly Davis Rodriguez Leigh Walzer Levine Fricke Inc Macomb Intermediate School Marc J Carmel Mark Fischer Michael O'Rourke Michael R Paslay Michael Stamer Michigan Department Of
CREDITOR NOTICE NAME John Fabor
Barb Neal Utilities Department The Mator at City Hall Roger Elkins City Manager Pauline Houston Dept Of Building And Safety 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
Gatx Corporation
Email afreeman@akingump.com cityofadrian@iw.net aeaton@stblaw.com bbest@dykema.com bryan_clay@ham.honda.com bneal@co.champaign.il.us christopher.j.kocinski@bofasecurities.com Gedwards@ci.albemarle.nc.us Eunicela@hotmail.com evartmanager@sbcglobal.net finance@city.kitchener.on.ca webmaster@ladbs.lacity.org MYoung@ci.lowell.ma.us Mevans@cityofmarshall.com roberto.robles@postman.org cphdp@porthuron.org treasurer@rialtoca.gov treasury@rochesterhills.org finwebreq@salisburync.gov finance@ci.westland.mi.us webmaster@woonsocketri.org THovarter@cityofmarshall.com kpm3@daimlerchrysler.com krk4@daimlerchrysler.com dsaltz@ford.com danielle.kemp@lw.com dfreedman@ermanteicher.com david.heller@lw.com David.Youngman@ColAik.com eerman@ermanteicher.com ecasey@stblaw.com fgorman@honigman.com perry.gail@pbgc.com contactgatx@gatx.com rail.sales@ge.com ges@dgdk.com HSNovikoff@wlrk.com hsullivan@unumprovident.com jplemmons@dickinson-wright.com jan_steinle@mieb.uscourts.gov jrc8@daimlerchrysler.com joe_lafleur@ham.honda.com js284477@bloomberg.net jharris@quarles.com greenj@millercanfield.com jdawson@quarles.com jss@sawyerglancy.com josef.athanas@lw.com joseph.delehant@sylvania.com jfischer@carsonfischer.com kcrumbo@kraftscpas.com kgottsponer@akingump.com kschultz@tmmna.com kim.stagg@nmm.nissan-usa.com krodriguez@gosrr.com lwalzer@angelogordon.com veronica.fennie@lfr.com webmaster@misd.net mcarmel@kirkland.com mark.w.fischer@gm.com Michael.Orourke@colaik.com mpaslay@wallerlaw.com mstamer@akingump.com treasReg@michigan.gov
In re: Collins & Aikman Corp., et al. Case No. 05-55927 (SWR)
Page 1 of 2
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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 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
CREDITOR NOTICE NAME
15663507 Lacolle
William Kinley President
Collector Of Revenue
State Of Michigan Stephen E Spence Stephen S LaPlante T Pryce 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 mike.paslay@wallerlaw.com info@electionsquebec.qc.ca mied@dor.mo.gov maire@st-zotique.com Nick.Shah@cit.com nina.m.rosete@bofasecurities.com phoffman@bofasecurities.com ppantaleo@stblaw.com phhmail@phhpc.com pdublin@akingump.com WDKinley@aol.com raurand@e-bbk.com rjsidman@vssp.com rmcdowell@bodmanllp.com rschrock@kirkland.com rick.feinstein@ubs.com legal@ricoh.ca rdiehl@bodmanllp.com rweiss@honigman.com leggettr@stlouiscity.com rrose@dykema.com eagle.sarah@pbgc.com sean.p.corcoran@delphi.com stoby@dykema.com sjbolek@co.stark.oh.us deq-ead-env-assist@michigan.gov shuttkimberlyj@michigan.gov
Of Ingersoll Joseph T. Deters
Service de la Tresorerie
treasReg@michigan.gov steve.e.spence@usdoj.gov laplante@millercanfield.com tpryce@ford.com elantz@town.ingersoll.on.ca radom@butzel.com treasurer@tos.state.oh.us tsherick@honigman.com Frank.Chaffiotte@cit.com e-rental@ur.com msaintdenis@ville.farnham.qc.ca blanderson@eastman.com kandrews@e-bbk.com wdiehl@e-bbk.com bbyrne@e-bbk.com
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CREDITOR NOTICE NAME John Livingston Rob Morgan Michael S Stamer Philip C Dublin
ADDRESS2
COUNTRY
Jim Frick Charlie Burrill Linda Vesci Mary Callahan Roxane Ellwalleger Mark Ferderber Thomas B Radom Attn Receiver General International Tax Service Ohio Income Tax City Building Income Tax Division Canton Income Tax Dept Wastewater Labroratory PO Box 1717
Canada Canada
620 W Washington St 142
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Port Huron Police Department Don Brown Barbara J Walker Jay B Knoll Jeff Rutter David Brasseur Bruce Tobiansky Susan F Herr Ronald Rose & Brendan Best Todd McCallum Gary Torke Paul Hanson William Stiefel Directors Office for Taxpayer Services Division
PO Box 80026 1007 N Market St
CREDITOR NAME Acord Inc Advanced Composites Inc Akin Gump Strauss Hauer & Feld LLP American General Finance Assoc Receivables Funding Inc Basell USA Inc Basf Corporation Bayer Material Sciences BNY Midwest Trust Company BNY Midwest Trust Company Brown Corporation Butzel Long PC Canada Customs & Rev Agency Canada Customs & Rev Agency Charter Township Of Plymouth City Of Barberton City Of Barberton City Of Battle Creek City Of Canton City Of Dover City Of Dover City Of Evart Recreation Dept City Of Fullerton City Of Havre De Grace City Of Longview City Of Phoenix City Of Roxboro City Of St Joseph City Of Sterling Heights City Of Stockton City Of Williamston City Treasurer Colbond Inc Collector Of Revenue Collins & Aikman Corp Dayton Bag & Burlap Co Dow Chemical Co DuPont DuPont Dykema Gossett PLLC Enerflex Solutions LLC ER Wagner Manufacturing Exxon Chemicals Fisher Automotive Systems Fisher America Inc Freudenberg Nok Inc Ga Dept Of Revenue Gaston County Ge Capital Ge Capital Ge Capital Ge Capital Comm Serv Astro Dye GE Polymerland Health Alliance Medical Plans Inc Highwoods Forsyth Lp Highwoods Forsyth Lp Hnk Michigan Properties Indiana Department Of Revenue Indiana Dept Of Revenue Val Venable Robena Vance co Highwoods Properties Llc co Highwoods Properties Llc co Rudolph libbe Properties 2120 West End Ave Ste 100 3100 Smoketree Ct Ste 600
ADDRESS1 2711 Product Dr 1062 S 4th Ave 590 Madison Ave 505 S Neil St PO Box 16253 7925 Kingsland Dr 1609 Biddle Ave 100 Bayer Rd Bldg 16 2 North LaSalle St Ste 1020 2 North LaSalle St Ste 1020 3441 Hidaway 100 Bloomfield Hills Pkwy Ste 100 1 5 Notre Ave 2204 Walkley Rd PO Box 8040 576 West Pk Ave 576 West Pk Dr 10 N Division St Suite 114 49014 PO Box 9951 PO Box 818 484 Middle Rd 200 South Main St 303 W Commonwealth Ave 711 Pennington Ave PO Box 1952 Phoenix Police Dept PO Box 128 700 BRd St 40555 Utica Rd PO Box 201005 161 E Grand River 100 Mcmorran Sand Hill Rd 201 N Second St 250 Stephenson Hwy 322 Davis Ave 23030 Dow Center Barley Mill Plaza Bldg 26 DuPont Legal D 7156 400 Renaissance Center 1515 Equity Dr 200 4611 North 32nd St 13501 Katy Fwy 1084 Doris Rd 47690 E Anchor Ct PO Box 105499 PO Box 890691 PO Box 740434 PO Box 640387 PO Box 642444 PO Box 60500 9930 Kincey Ave 102 E Main St Ste 200 Attn Lease Administration Attn Lease Administration 7255 Crossleigh Court Ste 108 100 N Senate Ave PO Box 7218
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ZIP 48309-3810 453658977 10022 61820-2500 29606 27613-4203 48192 15205-9707 60602 60602 48306-1453 48304 P3A 5C2 K1A 1B1 48170-4394 44203 44203-2584 49014 44711-9951 03820-0818 03820 49631 92632 21078 75606 85003 27573 49085-1355 48311-8009 952019005 48895 48060 28782 63301 48083 45403-2910 48674-0001 19880-0026 19898 48243 48084-8084 53209-6023 77079-1305 48326-2613 48170 30348-5499 28289-0691 30374 15264-0387 15264 28260 28078 61801-2744 37203-5223 27604 43617 46204-2253 46207-7218
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CREDITOR NOTICE NAME of the City of Montgomery
ADDRESS2
COUNTRY
Canada
SBSE Insolvency Unit Bill Weeks Tim Gorman Laura Kelly 200 Fair Oaks Lane 233 S Wacker Dr
Lilia Roman David Heller Josef Athanas & Danielle Kemp C Garland Waller
Canada Canada
co Beer Wells Real Estate Bankruptcy Auditor Barb Krzywiecki Woody Ban
Canada
Canada Canada
Dan Thiffault PO Box 6529
Industry Canada Als Financial Canada Customs & Rev Agency Technology Ctr
875 Heron Rd
Canada Canada Canada Canada Canada Canada
George Tabry Midwest Regional Office Christine Brown Peter Pantaleo Erin Casey & Alice Eaton Sales & Use Tax Division Lorraine Zinar Daniel Watson Dept Of Commerce & Nat Res Linda King Matthew Rick Asst Attorney General State Of Michigan Mc State Secondary Complex US Trustee First Plaza County Of Fresno Bruce B Galletly Raymond Soucie
50 N Ripley St
PO Box 2228
CREDITOR NAME Industrial Development Board Industrial Leasing Company Industrial Truck Sales & Svc Inmet Division of Multimatic Internal Revenue Service Intertex World Resources Trintex Corp Invista ISP Elastomer Janesville Products Keith Milligan Kentucky Revenue Cabinet Lake Erie Products Latham & Watkins LLP Lear Corp Manpower Meridian Magnesium Meridian Park Ministre Du Revenu Du Quebec Municipality Of Port Hope North Loop Partners Ltd Office of Finance of Los Angeles Orlando Corporation Pine River Plastics Inc PolyOne Corp Prestige Property Tax Special Princeton Properties Progressive Moulded Products 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 Revenue Canada Riverfront Plastic Products Inc Securities and Exchange Commission Select Industries Corp Simpson Thacher & Bartlett LLP South Carolina Dept Of Revenue Southco Standard Federal Bank State Of Alabama State Of Michigan 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 Administrator Tax Collector Tcs Realty Ltd Teknor Financial Corporation TG North America Canada
ADDRESS1 PO Box 4660 PO Box 1803 PO Box 1807 35 West Milmot St Box 330500 Stop 15 500 Wedowee St 601 S LA Salle St Ste 310 PO Box 4346 2700 Patterson Ave 3745 C Us Hwy 80 W Sales & Use Tax Return 321 Foster Ave Sears Tower Ste 5800 21557 Telegraph Rd 30800 Northwestern Hwy 2001 Industrial Dr 2707 Meridian Dr 3800 Marly PO Box 117 PO Box 3449 3700 Wilshire Ste 310 6205 Airport Rd 1111 Fred W Moore Hwy 33587 Walker Rd 1025 King St East 678 Princeton Blvd 9024 Keele St Church St Station 50 Rockefeller Lobby 2 100 Vesper Executive Pk Postal Station D Box 2330 700 Leigh Capreol 875 Heron Rd 11 Station St Ottawa Technology Centre 275 Pope Rd Ste 102 780 Hillsdale St 175 W Jackson Blvd Ste 90 240 Detrick St 425 Lexington Ave PO Box 125 210 N Brinton Lake Rd 2600 West Big Beaver Rd Department Of Revenue PO Box 30004 PO Box 30457 430 W Allegan St PO Box 30754 Dept 77833 7150 Harris Dr PO Box 30015 211 W Fort St Ste 700 24901 Northwestern Hwy 302 1985 Blvd Se One Capitol Hill PO Box 1192 21 Albert St PO Box 538308 1400 Stephenson Hwy
CITY Montgomery Grand Rapids Durham Richmond Hill Detroit Bowdon Chicago Houston Grand Rapids Phenix Frankfort Wood Dale Chicago Southfield Farmington Hills Eaton Rapids Greenville Ste Foy Port Hope Longview Los Angeles Mississauga St Clair Avon Lake Cambridge Lowell Concord New York New York Tyngsboro Ottawa Dorval Ottawa Belleville Ottawa Summerside Wyandotte Chicago Dayton New York Columbia Concordville Troy Montgomery Lansing Lansing Lansing Lansing Detroit Lansing Detroit Southfield Hickory Providence Fresno Trenton Atlanta Troy
STATE AL MI NC ON MI GA IL TX MI AL KY IL IL MI MI MI NC QC ON TX CA ON MI OH ON MA ON NY NY MA ON QC ON ON ON PE MI IL OH NY SC PA MI AL MI MI MI MI MI MI MI MI NC RI CA ON GA MI
ZIP 36103-4660 49501 27702-1807 L4B 1L7 48232 30108-1541 60605-1725 77210 49546 36870 40620-0003 60191 60606 48034 48334 48827 27834 G1X 4A5 L1A 3V9 75606 90010 L4V 1E3 48079-4967 44012 N3H 3P5 01851 L4K 2N2 10249 10020-1605 01879-2710 K1P 6K1 H4Y 1G7 K1A 1B1 K8N 2S3 K1A 9Z9 C1N 5Z7 48192-7120 60604 45404-1699 10017-3954 292020101 19331-9331 48084 36104 48909 48909-7957 48918-0001 48909 48277-0833 48909 48226 48075 28602 02908-5811 937151192 K8V 5R1 30353 48083
Page 2 of 3

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CREDITOR NOTICE NAME
ADDRESS2 PO Box 67
COUNTRY
Farmville Downtown Partnership PO Box 100 PO Box 100
Canada
Fsia Inc
Randy Lueth Tom Tekieke
ADDRESS1 126 North Pearl St 1306 E Triumph Dr 356 Main St 115 West Church St 30 King St East 100 Old River Rd PO Box 520 PO Box 67 315 North Main St 200 E Big Beaver PO Box 33525 7201 W Friendly Ave 12003 Toepher Rd 800 Standard Pkwy
CITY Pageland Urbana Farmington Farmville Gananoque Lincoln Old Fort Pageland Troy Troy Detroit Greensboro Warren Auburn Hills
STATE SC IL NH NC ON RI NC SC NC MI MI NC MI MI
ZIP 29728 61802 03835 27828-1621 K7G 2T6 02865 28762 29728 27371 48083 48232 27410-6237 48089-3171 48326-1415
Attn Civil Division Jerry Dittrich General Fax Terry Nardone Adriana Avila Blue Point Capital Bpv Lowell LLC PO Box 113
CREDITOR NAME The Town Of Pageland Tom Heck Truck Service Town Of Farmington Town Of Farmville Town Of Gananoque Town Of Lincoln Finance Office Town Of Old Fort Town Of Pageland Town Of Troy Tr Associates Treasurer City Of Detroit Unifi Inc Uniform Color Co Unique Fabricating Inc United States Attorney for the Eastern District of Michigan Valeo Inc Valiant Tool & Mold Inc Vari Form Inc Vericorr Packaging fka CorrFlex Packaging Vespera Lowell Llc Village Of Holmesville Village Of Rantoul 211 W Fort St Ste 2001 3000 University Dr 6775 Hawthorne Dr 12341 E 9 Mile Rd 251 Industrial Dr 10 Livingston Pl 2nd Fl 205 Millersburg Rd 333 S Tanner Ste PO RFQ Office MI MI ON MI MI CT OH IL 48226 48326-2356 N8T 3B8 48089 49631-8517 06830 44633 61866 Canada
Visteon Climate Control W9 Lws Real Estate Limited Wachtell Lipton Rosen & Katz Wellington Green LLC co Lincoln Harris Llc Hal Novikoff
One Village Center Dr 10101 Claude Freeman Dr Ste 200 N 51 W 52nd St 31100 Telegraph Rd Ste 200
Detroit Auburn Hills Windsor Warren Evart Greenwichn Holmesville Rantoul Van Buren Township Charlotte New York Bingham Farms
MI NC NY MI
48111 28262-2337 10019 48025
Page 3 of 3
EXHIBIT B
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0555927050609000000000003
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0555927050718000000000044
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EXHIBIT C-3 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
THIRD MONTHLY STATEMENT OF KZC SERVICES, LLC AND JOHN R. BOKEN FOR INTERIM FEES AND REIMBURSEMENT OF EXPENSES FOR RESTRUCTURING SERVICES PROVIDED ON BEHALF OF THE DEBTORS FOR THE PERIOD FROM JULY 1, 2005 THROUGH JULY 31, 2005
Total Fees KZC Services, LLC and John R. Boken $1,734,054.00
Total Expenses $200,699.89
Amount Due (80% Fees + 100% Expenses) $1,587,943.09
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. 05-55980; 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.
KZC SERVICES, LLC COLLINS & AIKMAN CORPORATION DAILY TIME LOG JULY 2005
LEE SMITH MANAGER
PRIMARY AREA OF RESPONSIBILITY CONTRACT PRICING PLANT PROFITABILITY DEVELOPMENT OF STRATEGIC PLAN DATE -
HOURS 13.5
DAILY LOG Activities during the day included: all unprofitable contracts in the phase 1 plastics bucket. This included undertaking a detailed cost analysis by program to understand its viability - Understanding the amount of unrecovered ED& T in relation to each program in phase 1 - Discussing findings with senior management in order to develop a pricing strategy to take to the respective OEM's - Liaising with commercial department personnel to ensure all unprofitable contracts have been identified
07/18/05
- Reviewing
07/19/05
15.0
Activities during the day included: - Reviewing all unprofitable contracts in the phase 1 plastics bucket. This included undertaking a detailed cost analysis by program to understand its viability - Understandingthe amount of unrecovered ED&T in relation to each program in phase 1 - Discussing findings with senior management in order to develop a pricing strategy to take to the respective OEM's - Liaising with commercial department personnel to ensure all unprofitable contracts have been identified Activities during the day included: - Reviewingall unprofitable contracts in the phase 1 plastics bucket. This included undertaking a detailed cost analysis by program to understand its viability - Understanding the amount of unrecovered ED&T in relation to each program in phase 1 - Discussing findings with'senior management in order to develop a pricing strategy to take to the respective OEM's - Liaising with commercial department personnel to ensure all unprofitable contracts have been identified
07/20/05
14.0
Page 44 of 90
EXHIBIT D
KZC SERVICES, LLC AND JOHN R. BOKEN SUMMARY OF HOURS BILLED BY PROFESSIONAL AND PARAPROFESSIONAL FOR THE PERIOD FROM MAY 17, 2005 THROUGH AUGUST 31, 2005
Hours July 8.0 2.0 276.0 280.7 143.5 272.5 249.1 136.9 307.0 262.4 273.5 116.7 278.3 252.3 248.9 155.0 18.8 258.0 3,539.6 17.4 28.0 8.1 259.8 313.3 Hourly Rate Prior to 7/1/05 $ 760.00 $ 695.00 $ 670.00 $ 610.00 $ 610.00 $ 565.00 $ 495.00 $ 495.00 $ 465.00 $ 465.00 $ 440.00 $ 440.00 $ 440.00 $ 415.00 $ 415.00 $ 395.00 $ 390.00 $ 365.00 $ 340.00 $ 325.00 $ 250.00 $ 225.00 Hourly Rate Post 7/1/05 760.00 695.00 670.00 610.00 610.00 590.00 495.00 495.00 465.00 465.00 460.00 440.00 440.00 425.00 425.00 415.00 390.00 365.00 350.00 325.00 250.00 225.00
Professional Stephen Cooper Leonard LoBiondo John Boken William Murphy Thomas Zambelli David Orlofsky Daniel Kerrigan Mark Lymbery Lyle Potash Arthur Kaz John Sharpe Lee Smith Kevin Sullivan Jon Emswiler Tadd Crane Dana Frazier Brian Yano Jason Scott Elizabeth Kardos Christopher Yi Paul Bourke Nick Riley Total for Professionals Paraprofessional Laurie Capen Alicia Englund Kathleen Mahon Melissa Demordaunt Matthew Segatti Total for Paraprofessionals Total for Professionals & Paraprofessionals
May 11.0 12.3 150.0 132.8 117.0 99.5 136.6 87.0 142.0 141.8 8.4 16.7 60.0 87.2 38.5 4.8 156.1 5.5 1,407.2 39.0 2.0 1.1 66.0 108.1
June 35.5 43.0 312.0 314.0 279.6 241.0 334.5 287.6 346.3 320.1 136.5 313.8 145.9 350.0 299.4 295.3 15.0 337.4 4,406.9 22.0 30.0 4.5 301.8 358.3
August 324.0 238.2 308.0 208.9 285.2 227.9 247.1 274.4 252.0 261.2 244.5 258.1 283.4 1.1 278.8 3,692.8 5.5 95.5 36.1 6.5 143.6
Total 54.5 57.3 1,062.0 965.7 540.1 921.0 929.1 796.7 227.9 1,042.4 998.7 662.0 438.9 685.4 863.5 866.4 537.5 38.5 38.6 1,034.9 6.6 278.8 13,046.5 83.9 97.5 94.1 20.2 627.6 923.3
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Total Fees 41,420.00 39,823.50 711,540.00 589,077.00 329,461.00 534,877.50 459,904.50 394,366.50 105,973.50 484,716.00 450,164.00 291,280.00 193,116.00 289,836.00 363,320.50 352,368.00 209,625.00 14,052.50 13,312.00 336,342.50 1,650.00 62,730.00 6,268,956.00 14,797.00 7,312.50 7,057.50 1,515.00 25,104.00 55,786.00
$ $ $ $ $
175.00 75.00 75.00 75.00 40.00
$ $ $ $ $
180.00 75.00 75.00 75.00 40.00
1,515.3
4,765.2
3,852.9
3,836.4
13,969.8
6,324,742.00
EXHIBIT E
KZC Services, LLC and John R. Boken Biographies of Professional Personnel Involved in Collins & Aikman Chapter 11 Case For the Period from May 17, 2005 through August 31, 2005
Stephen Cooper Steve Cooper is Executive Managing Director of Kroll Zolfo Cooper LLC, an affiliate of KZC Services LLC. He is Chairman of Kroll Zolfo Cooper LLC and of Kroll's Corporate Advisory and Restructuring Group. He assumed both positions in September 2002, when Kroll acquired Zolfo Cooper, the corporate recovery and crisis management firm that he co-founded in 1985. With more than 30 years of experience as a financial advisor, Steve is a sought-after interim executive for companies in trouble. Steve was named Chief Executive Officer of Krispy Kreme Doughnuts in January 2005, and has served as Chief Executive Officer and Chief Restructuring Officer of Enron since 2002. A turnaround industry pioneer, Steve has worked on both the creditor and company sides of distressed situations. Through managing more than 300 engagements, Steve has earned an international reputation as a creative problem-solver who can craft constructive business solutions out of complex, contentious situations. His track record includes prominent engagements such as Laidlaw, Washington Group, Morrison Knudsen, Federated Department Stores and numerous others. Prior to founding Zolfo Cooper, Steve was a financial consulting partner of Touche Ross (now Deloitte & Touche), where he was also a founding partner of that firm's reorganization advisory services group. He holds a B.A. from Occidental College and an M.B.A. from the Wharton School at the University of Pennsylvania. Steve is a member of the American Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants, the Institute of Management Accountants, the Turnaround Management Association and the Association of Insolvency and Restructuring Advisors. He has also been named a fellow of the American Bankruptcy Institute and is a founding member of the International Insolvency Institute. In addition, Steve is a frequent speaker and author on the subjects of leadership and financially troubled companies. Steve is serving as Chairman of the Board of Directors of Collins & Aikman. He was appointed Chairman effective July 7, 2005. Prior to being appointed to the Board, Steve served in an advisory capacity to Collins & Aikman as part of the KZC Services, LLC team.
Leonard LoBiondo Leonard LoBiondo is a Senior Managing Director with, and the co-Chief Operating Officer of, Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. For more than 25 years, he has provided professional services to major corporations and middle market businesses. Leonard is a specialist in crafting effective, value-enhancing solutions for companies experiencing financial and operational problems. He has provided advice to virtually all stakeholders in situations of distress, including examiners, secured/unsecured creditors and debtors of troubled companies in and out of bankruptcy, as well as the management of other companies seeking turnaround expertise. Leonards experience spans a broad range of industries, including wholesale/retail, apparel import and manufacturing, consumer products, energy, transportation, paper trading, manufacturing, distribution, hotel and real estate. He has held interim management positions in a number of cases, including Chief Restructuring Officer of Maxim Crane and NRG Energy, where he also served as a member of the Board of Directors. Other notable assignments representing stakeholder interests include Allegheny Health Education and Research Foundation, Allegheny International, Alliance Entertainment, Continental Illinois Holding Company, Laidlaw, Loewen Group International, Malden Mills, NationsRent, Pittsburgh Penguins, Prime Motor Inns, Solutia, Sunbeam, Trans World Entertainment and TWA. Leonard has previous work experience with Arthur Andersen and Deloitte, Haskins & Sells (now Deloitte & Touche). Leonard holds a B.S. in Accounting from Villanova University. He is a member of the American Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants, and the Association of Insolvency and Restructuring Advisors. Leonard is currently serving as a member of the Board of Directors of Collins & Aikman. He was appointed to the Board effective July 7, 2005. Prior to being appointed to the Board, Leonard served in an advisory capacity to Collins & Aikman as part of the KZC Services, LLC team.
John Boken John Boken is a Managing Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. John has more than 15 years of corporate restructuring experience and specializes in providing restructuring advisory and crisis management services to financially distressed companies and their creditors. He has led over 50 restructuring projects in a wide variety of industries, including energy, health care, manufacturing, retail and agriculture. John has developed expertise in devising business turnaround strategies, formulating debt restructuring plans and divesting of unprofitable and/or non-strategic operations and assets. He is particularly adept at designing creative solutions to the complex operating and capital structure problems that exist in large restructuring cases. Johns experience includes serving in senior executive capacities for client companies. John served as President and Chief Operating Officer of NRG Energy in its Chapter 11 proceeding and as Chief Executive Officer of Entegra Power Group upon its emergence from bankruptcy. Other notable assignments have included Southern California Edison Company, Fleetwood Enterprises, Sun Healthcare Group, AgriBioTech, Garden Botanika, Party America, Alliance Imaging and Riviera Hotel and Casino. John currently is responsible for managing the activities of Kroll Zolfo Cooper LLC in the western United States. Previously, John was the managing partner of the Los Angeles corporate restructuring practice of Arthur Andersen. John holds a B.S. in Commerce and Finance from the University of Santa Clara. He is a Certified Public Accountant and a Certified Insolvency and Restructuring Advisor. John is a member of the Association of Insolvency and Restructuring Advisors, the American Bankruptcy Institute and the Turnaround Management Association. He is a frequent speaker at seminars and conferences on issues relating to financially distressed companies. For his work on NRG Energy, John received the Turnaround Management Associations 2004 Mega Company Turnaround of the Year Award. John is serving as Chief Restructuring Officer for Collins & Aikman. He was appointed to that position effective May 17, 2005.
William Murphy Bill Murphy is a Senior Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. He has more than 27 years of professional experience, including more than 21 years specializing in corporate restructurings. He has advised troubled companies, their creditors and other economic stakeholders in both Chapter 11 and out-of-court workouts. His expertise includes filling the role of interim management, advising management and creditors on strategic planning, corporate viability, business plan alternatives, financial projections and debt restructuring. Recently, Bill held the position of interim Chief Financial Officer of Penn Traffic, a $3 billion supermarket chain. Bill was one of the key executives who led the successful restructuring of the company, which was completed in April 2005. Bills experience reflects a cross-section of industries, including airline, steel, retail, manufacturing, restaurant, entertainment and distribution. He has provided restructuring expertise in several situations, including MCI WorldCom, Polaroid, Penn Traffic, Hedstrom, Washington Group, Pan Am and Eastern Airlines. His international experience includes advisory work on airline restructuring situations in Mexico and Brazil. Prior to joining Kroll Zolfo Cooper LLC in 1997, Bill was a partner in the restructuring group of Ernst & Young, where he worked for 15 years. Previously, he worked for Main Hurdman (now KPMG). Bill holds a B.S. in Accounting from Lehigh University. He is a member of the American Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants and the Association of Insolvency and Restructuring Advisors. Bill is serving as an Associate Director of Restructuring in the Collins & Aikman case.
KZC Services, LLC and John R. Boken Biographies of Professional Personnel Involved in Collins & Aikman Chapter 11 Case For the Period from May 17, 2005 through August 31, 2005 Thomas Zambelli Thomas Zambelli is a Senior Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Tom has more than 25 years of professional experience, including 10 years of working with troubled companies and their stakeholders. Tom's experience has included advising and assisting clients in developing and negotiating reorganization and restructuring plans, preparing valuations, performing viability analyses, formulating business strategies and cost reduction programs, developing and evaluating business plans, preparing preference analyses, negotiating creditor disputes and performing liquidation analyses. Tom has advised clients in the automotive, retail, textile, energy, transportation, healthcare and service industries. His notable assignments have included Laidlaw, AMR, Smith & Hawkins, Solutia, a $10 billion (revenue) energy company, Andover Togs and VecTour. Before joining Kroll Zolfo Cooper LLC, Tom was the Chief Financial Officer of Tops Appliances Inc., Giant Carpet, Canadians and Pergament Home Centers. All four retail companies were in various stages of financial distress prior to Tom joining them. He was an active participant in each of those reorganizations. Tom holds a B.S. in accounting from Saint Peters College. He is a member of the Association of Insolvency and Restructuring Advisors. Tom served as an Associate Director of Restructuring in the Collins & Aikman case for the period up to the initiation of the Group-Wide Administration of the European entities on July 15, 2005.
David Orlofsky David Orlofsky is a Senior Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. He has over 11 years of diversified business experience. Recently, Dave held the dual positions of Chief Financial Officer and Chief Operating Officer at Malden Mills, a U.S.-based textile company with operations in Europe and Asia, best known as the creators of Polartec brand fleece. At Malden Mills, David was responsible for managing operations, finance, sales, marketing and its international divisions. He was one of the key executives who led the successful restructuring of the company through a variety of turnaround efforts including strategic cost reductions, growth initiatives and the establishment of a sales organization in China. Prior to the Malden Mills assignment, David provided advice and assistance in the restructurings of Washington Group, Recoton, American Home Patient and Fredericks of Hollywood. David has been with Kroll Zolfo Cooper LLC for five years. He was an audit manager at Arthur Andersen prior to joining the firm. David holds B.S. in Business Administration from Montclair State University. He is a Certified Insolvency and Restructuring Advisor and a former certified public accountant. David is serving as an Associate Director or Restructuring in the Collins & Aikman case.
Daniel Kerrigan Dan Kerrigan is a Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. He has more than 13 years of diversified business experience, which includes over seven years advising troubled companies. Dans experience includes advising both debtors and creditors in implementing cash management tools, formulating and evaluating business plans and restructuring debt obligations. Dan has advised clients in the automotive, retail, manufacturing and health care sectors. Some of his notable restructuring assignments include Boston Chicken, Schwegmann Supermarkets, Family Golf, ACT Manufacturing, Special Metals and Phy America. Prior to joining the firm in 1998, Dan spent two years with the asset-based lending group of CIT. His responsibilities at CIT included reviewing business models and collateral to determine borrowing base availability for existing and new loan originations. He was also a senior audit accountant at Deloitte & Touche, serving retail, real estate and manufacturing clients. Dan holds a B.B.A. in Public Accounting from Pace University. He is a member of the Association of Insolvency and Restructuring Advisors. Dan is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Mark Lymbery Mark Lymbery is a Director with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. He has more than 15 years of professional experience, including seven years specializing in financial advisory and corporate restructurings. Marks experience reflects work in a variety of industries, including retail, health care, manufacturing, telecommunications and energy. Prior to joining Kroll Zolfo Cooper LLC in 2003, Mark was a manager in the restructuring group of Ernst & Young and also has previous international and domestic experience in operations, finance and valuation consulting. Mark holds a B.B.A. from Texas A&M University and an M.B.A. from the Amos Tuck School of Business at Dartmouth College. He is a Chartered Financial Analyst and a Certified Insolvency and Restructuring Advisor. He is a member of the Turnaround Management Association, the Association of Insolvency and Restructuring Advisors and the American Bankruptcy Institute. Mark is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Lyle Potash Lyle Potash is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Prior to joining Kroll Zolfo Cooper LLC in June 1995, Lyle was a Vice President with the financial services subsidiary of Verizon Communications (formerly Bell Atlantic Capital Corporation) from September 1991 to May 1995. At Bell Atlantic, Lyle was involved in various aspects of capital structuring, acquisition and disposition structuring and the analysis of annual business plan development. Prior to this position, Lyle was a senior analyst at various operating companies within Bell Atlantic, responsible for lease pricing and structuring and the development of annual operating plans. Lyle holds a B.S. in Finance from Pennsylvania State University and a M.B.A. from Arizona State University. He is a Certified Insolvency and Restructuring Advisor. Lyle is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Arthur Kaz Arthur Kaz is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Arthur has 15 years of consulting and business building experience. Since joining Kroll Zolfo Cooper LLC in 2001, Arthur has worked on several successful restructurings including Laidlaw, Penn Traffic and Friedmans Jewelry. Prior to joining the firm, Arthur helped to build Internetbased Urbanfetch.com, where as a Managing Director he led business development efforts and oversaw day-to-day operations. Arthur also has previous work experience as a Senior Consultant with international strategy consulting firm Mars & Co. At Mars & Co., Arthur advised seniormanagement of French multi-national corporations on issues of strategy and competitive positioning. His clients at Mars & Co. included Bausch & Lomb, Maytag and Parisbased Framatome ANP. Arthur began his career with Accenture, where as a manager he led project teams at clients including Procter & Gamble, Sprint and Delta Airlines. Arthur received his B.A. in mathematics (Phi Beta Kappa, cum laude) from Knox College and an M.B.A. in Finance from the University of Chicago Graduate School of Business. Arthur is a Certified Insolvency and Restructuring Advisor. He is a member of the Association of Insolvency and Restructuring Advisors, Turnaround Management Association and the American Bankruptcy Institute. Arthur is serving as an Associate Director of Restructuring in the Collins & Aikman case.
John Sharpe John Sharpe is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. John specializes in corporate insolvencies, restructurings and reorganizations. He has more than 15 years of business experience, primarily working with troubled companies. Prior to joining Kroll Zolfo Cooper LLC in September 2002, John was the Corporate Controller for Sleepmaster LLC, a Serta Company. Prior to 2000, John held positions in public companies including Chief Accounting Officer, Corporate Controller, and Treasurer. John also has prior work experience providing audit, tax, and advisory services to clients in various industries. John holds a B.S. in Accounting from North Carolina State University. John is a Certified Public Accountant and is a member of the Association of Insolvency and Restructuring Advisors. John is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Lee Smith - Manager Lee Smith is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Prior to joining Kroll Zolfo Cooper in March 2005, Lee was a Vice President with Giuliani Capital Advisers (previously Ernst & Young Corporate Finance LLC). From February 1999 to November 2002, Lee was a member of Ernst & Youngs UK Corporate Recovery department, specializing in corporate insolvencies, restructurings and reorganizations both inside and outside of formal insolvency proceedings in a variety of industries. In November 2002, he transferred to the United States to join the national Ernst & Young restructuring group, specializing in corporate restructurings and reorganizations both inside and outside of Chapter 11. Prior to 1999, Lee provided audit services to clients in various industries. Lee holds a BSc with Honors in Economics with Accountancy from Loughborough University in England. He is a member of the Institute of Chartered Accountants in England and Wales and is qualified to act as a Licensed Insolvency Practitioner in the UK. Lee is also a Certified Insolvency and Restructuring Advisor in the United States. He is a member of the Association of Business Recovery Professionals in the UK and the Association of Insolvency and Restructuring Advisors in the United States. Lee is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Kevin Sullivan Kevin Sullivan is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Kevin has more than 25 years of professional experience, including two years specializing in financial advisory and corporate restructurings. Kevins experience reflects work in several industries, including hospitality, health care, manufacturing and software development and distribution. Kevin holds a B.S. from Pennsylvania State University. He is a Certified Public Accountant and a member of the Association of Insolvency and Restructuring Advisors. Kevin served as an Associate Director of Restructuring in the Collins & Aikman case for the period up to the initiation of the Group-Wide Administration of the European entities on July 15, 2005.
Jon Emswiler Jon Emswiler is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Prior to joining Kroll Zolfo Cooper in May 2002, Jon was a Manager with the Corporate Restructuring practice of Arthur Andersen. Jon has previous work experience providing audit services to clients in various industries and as an operations analyst at a Fortune 500 pharmaceutical manufacturer. Jon holds a B.B.A. from Roanoke College and a M.B.A. in Finance and Accounting from Fordham University. Jon is Certified Insolvency and Restructuring Advisor. He is a member of the Turnaround Management Association and the Association of Insolvency and Restructuring Advisors. Jon is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Tadd Crane Tadd Crane is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Tadd has 6 years of restructuring experience. Prior to joining Kroll Zolfo Cooper in October 2001, Tadd was a member of the restructuring practice with PriceWaterhouseCoopers, where he provided advisory services in restructurings in various industries, including manufacturing, banking and telecommunications. Tadd has previous work experience providing public accounting and audit services to a wide range of clients. Tadd holds a B.S. from State University of New York at Binghamton and a M.B.A. from Fordham University, where he graduated with honors. He is a Certified Insolvency and Restructuring Advisor and a member of the Association of Insolvency and Restructuring Advisors. Tadd is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Dana Frazier Dana Frazier is a Manager with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Prior to joining Kroll Zolfo Cooper LLC, Dana was a Vice President with Giuliani Capital Advisors LLC (formerly Ernst & Young Corporate Finance LLC). Dana has specialized in developing and critiquing complex financial analyses, long-term integrated financial models, short-term cash flow forecasts and valuations. Danas work experience includes developing and analyzing business plans and cost reduction proposals, monitoring operating performance and assessing business viability. Dana holds a B.S. in Materials Science and Engineering and a M.B.A. with Highest Honors from the University of Illinois at Urbana-Champaign. He is a Certified Insolvency and Reorganization Advisor and a member of the Association of Insolvency and Reorganization Advisors. Dana is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Brian Yano Brian Yano is an Associate with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. He has more than 6 years of professional experience specializing in financial advisory and corporate restructurings. Brians experience reflects work in a variety of industries, including manufacturing, construction, retail and energy. Prior to joining Kroll Zolfo Cooper in 2002, Brian was an investment banker in the global transportation corporate finance group at Salomon Smith Barney. Brian holds a B.A. from the University of California at Los Angeles. He is a member of the Association of Insolvency and Restructuring Advisors. Brian served as an Associate Director of Restructuring in the Collins & Aikman case for the period up to the initiation of the Group-Wide Administration of the European entities on July 15, 2005.
Christopher Yi Christopher Yi is an Associate with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Prior to joining Kroll Zolfo Cooper LLC in March 2005, Chris was a senior auditor in the technology, media, and telecommunications group in the New York office of Deloitte & Touche. His audit clients included MCI, Lowes, Cendant and the National Football League. Chris holds a B.S. in Accounting and Management Information Systems from the University of California at Long Beach. Chris is serving as an Associate Director of Restructuring in the Collins & Aikman case.
Nick Riley Nick Riley is an Analyst with Kroll Zolfo Cooper LLC, an affiliate of KZC Services, LLC. Nicks previous work experience includes an internship with Kroll Zolfo Cooper LLC working on a variety of restructuring support projects. Nick holds a B.S. in Business Administration (magna cum laude) from Boston University where he majored in Accounting. Nick is serving as an Associate Director of Restructuring in the Collins & Aikman case.
EXHIBIT F
KZC SERVICES, LLC AND JOHN R. BOKEN SUMMARY OF OUT-OF-POCKET EXPENSES AND DIRECT COSTS FOR THE PERIOD FROM MAY 17, 2005 THROUGH AUGUST 31, 2005
May Travel And Lodging Meals Telephone Direct Costs Fax Charges-In Fax Charges-Out Photocopies Postage Total Expenses
$ 97,101.07 5,112.20 1,461.48 66.74 11.70 $ 103,753.19 $
June
191,264.19 16,237.56 6,110.03 351.02 42.00 5.40 0.83 $ 214,011.03 $
July
160,497.46 16,730.67 10,255.61 13,076.55 116.00 8.00 15.60 $ 200,699.89 $
August
113,142.47 13,635.90 5,719.94 19,004.30 100.00 12.00 6.60 9.96 $ 151,631.17 $
Total
562,005.19 51,716.33 23,547.06 32,498.61 258.00 20.00 39.30 10.79 $ 670,095.28

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

$6,324,742.00 $670,095.28 $6,994,837.28 First Interim Fee Application $452.74 $480.51

In accordance with the Retention Order, the Monthly Fee Statements

are full and complete copies of the Monthly Fee Statements.

During the Interim Fee Period, KZCS professionals and paraprofessionals

operational and legal perspective.

At the outset of the Chapter 11 Cases, there was an

Paragraphs 24 through 39 herein provide descriptions of the principal

designed, developed and produced weekly actual to forecast cash

monitored liquidity position and cash flow performance in relation

assisted purchasing personnel in addressing periodic issues critical

monitoring requirements of advisors to pre-petition receivables lender; and

designed and implemented reconciliation process with pre-petition

of identifying core and non-core operations;

assisted in researching and analyzing cost reduction opportunities

assisted the Debtors personnel in identifying and evaluating

led team in negotiating protocol for customer advance funding of

developed and managed databases detailing customer advance

organized and coordinated preparation of detailed Monthly

participated with the Debtors restructuring counsel and investment

assisted the Debtors personnel in all principal departments in day-

developed agendas for and participated in conference call meetings

organized and developed materials for and led presentation at the

reviewed and provided input to the Debtors restructuring counsel

Dated: November 9, 2005

enforceable upon its entry.

the implementation of this Order.

Dated: __________________, 2005 United States Bankruptcy Judge

Served via Electronic Mail

CREDITOR NOTICE NAME John Fabor

Served via Electronic Mail

CREDITOR NOTICE NAME

William Kinley President

Of Ingersoll Joseph T. Deters

Served via First Class Mail

620 W Washington St 142

PO Box 80026 1007 N Market St

Served via First Class Mail

CREDITOR NOTICE NAME of the City of Montgomery

Dan Thiffault PO Box 6529

Canada Canada Canada Canada Canada Canada

Served via First Class Mail

CREDITOR NOTICE NAME

Farmville Downtown Partnership PO Box 100 PO Box 100

Randy Lueth Tom Tekieke

48111 28262-2337 10019 48025

Total Fees KZC Services, LLC and John R. Boken $1,734,054.00

Total Expenses $200,699.89

Amount Due (80% Fees + 100% Expenses) $1,587,943.09

LEE SMITH MANAGER

175.00 75.00 75.00 75.00 40.00

180.00 75.00 75.00 75.00 40.00

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