|Michael F. Easley, Governor
Pamela T. Young, Chair
Buck Lattimore, Commissioner
Laura K. Mavretic, Commissioner
Danny L. McDonald, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers Commissioner
TO: All Interested Parties
FROM: Pamela T. Young, Chair
DATE: October 22, 2007
RE: Collins & Aikman Corporation
On May, 17, 2005, Collins & Aikman Corporation filed a Chapter 11 petition in the United States Bankruptcy Court for the Eastern District of Michigan. Collins & Aikman self-insured its workers’ compensation claims from September 12, 1990 to March 1, 2007. On July 17, 2007, the Bankruptcy Court approved the sale of substantially all of Collins & Aikman assets, which closed on October 11, 2007 and resulted in a default on the payment of the Collins & Aikman workers’ compensation claims.
The actions by Collins & Aikman constitute an insolvency and a default under the Security Act, pursuant to N.C. Gen. Stat. §97-135. As a result, the North Carolina Self-Insurance Security Association is obligated to pay “covered claims” of Collins & Aikman.
The Security Association is entitled to a 60-day stay in order to review and investigate each claim, pursuant to N.C. Gen. Stat. §97-141. The Stay will not interrupt payments of weekly compensation for incapacity (compensation for disability). The period of the Stay began upon the default of Collins & Aikman on October 11, 2007 and will expire on December 10, 2007.
The Security Association is represented by the:
STUART LAW FIRM, PLLC
Attorney Theresa S. Dew
1033 Wade Avenue
Raleigh, North Carolina 27605-1155
Questions regarding the insolvency should be directed initially to the Stuart Law Firm.
Questions regarding processing of the Collins & Aikman claims by the Industrial Commission should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or email@example.com. Due to the volume of inquiries, e-mail communication is requested if possible, though not required.
The Industrial Commission website (http://www.ic.nc.gov/) will be updated as needed with additional information.