Congoleum Corp. seeks bondholders' consent to amend indenture
Congoleum Corp. announced that as part of its strategy to resolve its asbestos
liabilities, it is seeking bondholders' approval of certain amendments to the
indenture governing its 8 5/8 percent Senior Notes due 2008. These amendments are
intended to expressly give Congoleum greater flexibility to proceed with certain steps and transactions in connection with its asbestos settlement negotiations, according to the company.
Upon successful completion of these negotiations, Congoleum
intends to file a prepackaged plan of reorganization under Chapter 11 of the Bankruptcy Code which would incorporate the asbestos settlement and leave its bondholders, trade creditors, and other non-asbestos related claim creditors unimpaired.