Collins & Aikman Gets Permission To Defer Interest

Law360, New York (August 30, 2006, 12:00 AM EDT) -- Bankrupt auto parts supplier Collins & Aikman Corp. received some relief on Tuesday after a judge authorized the company to defer paying $28.8 million in interest and fees on pre-bankruptcy loans as it prepares to file its Chapter 11 plan by Thursday.

Judge Steven Rhodes of the U.S. Bankruptcy Court in Detroit told the company that it would make the deferred payments in January 2007.

Last week, Collins & Aikman asked the court for permission to defer interest payments and fees that were due through December,...
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