Congoleum obtains approval of interim financing
The debtor-in-possession credit facility is extended by Congress Financial and provides up to $30 million in revolving credit based upon advance formulas against inventory and receivables at a rate of three-quarters of a percent over prime. Terms of the facility are substantially similar to those of the revolving credit facility Congoleum had with Congress prior to the bankruptcy filing. A hearing on the final approval of the debtor-in-possession financing will be held on Feb. 2.
A copy of the interim court order approving the debtor-in-possession credit facility has been filed with the Securities and Exchange Commission as an exhibit to a Form 8-K. Copies of the plan of reorganization and disclosure statement have also been filed with the Securities and Exchange Commission as exhibits to a Form 8-K.