Michael F. Easley, Governor
Pamela T. Young, Chair

Bernadine S. Ballance, Commissioner
Buck Lattimore, Commissioner
Laura K. Mavretic, Commissioner
Danny L. McDonald, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers Commissioner

North Carolina
Industrial Commission

MEMORANDUM

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
Suite 202
Raleigh, North Carolina 27605-1155
Telephone: 919-787-6050
Facsimile: 919-787-9988

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 gheen@ind.commerce.state.nc.us. 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.


N.C. Industrial Commission ·   4340 Mail Service Center ·   Raleigh, NC 27699-4340
Main Phone: (919) 807-2500 ·   Fax: (919) 715-0282
NCIC Home Page:
http://www.ic.nc.gov/