A major bankruptcy hearing for Collins & Aikman's Chapter 11 bankruptcy case has been postponed to give the company more time to sell off parts of its business and settle objections to the firm's plan to liquidate, a Detroit newspaper reported.

The Detroit Free Press said a hearing on the supplier's confirmation plan scheduled for Tuesday (5 June) has been moved to 12 July.

Nevertheless, C&A was expected in Detroit bankruptcy court today to ask a judge to approve the sale of its automotive flooring and acoustics business and parts of its soft-top convertible business, the paper said.

The report noted that C&A has agreed to sell the automotive flooring and noise-deadening automotive interior components division to investor Wilbur Ross' International Automotive Components Group North America for $US126m.

The company will also ask a judge to approve the sale of parts of its soft-top convertible business to Magna Car Top Systems, a subsidiary of Magna International, the Detroit Free Press said.

The report added that Collins & Aikman, which has decided to liquidate rather than restructure as a new company, is still negotiating the sale of its plastics business with Cadence Innovation.