Collins & Aikman's term loan "B" dropped six points to 32 last week. The debt has fallen around 18 points over the past month. A salesman said the debt has dropped since Wilbur Ross pulled out of the running to buy Collins & Aikman's North American business a month ago.
At the end of August, Collins filed a stand-alone plan of reorganization with the bankruptcy court in Detroit. In a release it said it is working toward satisfying various conditions to obtain approval of the plan and exit Chapter 11. A C&A spokesman would not confirm that Ross was interested in acquiring the company or that he dropped out of the running to acquire the business a month ago. He added that even though the company has filed a plan of reorganization, it is still open to selling all or parts of its assets. The plan calls for the emergence from Chapter 11 by the end of February 2007. An email and a call to Ross were not returned.