Congoleum Corp. amends agreement to settle asbestos claims
The amendments provide additional time for parties to review and respond to information required in order to participate in the settlement. The agreement contemplates a Chapter 11 reorganization seeking confirmation of a pre-packaged plan of reorganization that would leave trade and other unsecured creditors unimpaired and would resolve all pending and future asbestos claims against Congoleum, including personal injury asbestos claims against Congoleum's distributors and affiliates that derive from claims made against Congoleum.
Approval of such a plan of reorganization will require the supporting vote of at least 75 percent of the asbestos claimants with claims against Congoleum who vote on the plan.
Roger S. Marcus, chairman of the board, commented "Although this amendment postpones our anticipated date for entering into Chapter 11 until September, we believe it reduces the risk of delays to the confirmation of our plan and the far more important goal of exiting Chapter 11 with the asbestos issue behind us, which we still hope to accomplish by the end of the year."