Asbestos case update: Congoleum renegotiates settlement, still needs court's OK

In a move that it hopes "will ultimately shorten the time it will take to get the asbestos problem completely behind us," Congoleum said it has agreed to modify its original settlement. The new agreement, which is yet to be finalized, stipulates that individuals whose claims were already settled can now share in the proceeds from future claims. At the same time, they agree to forego the security interest they were granted under the original plan. The plan is subject to court approval.

The company said it reached an agreement in principle with representatives of the Asbestos Claimants' Committee and the Future Claimants' Representative and is trying to win approval from other parties affected by the modifications. It added that "there can be no assurance " that the amendments will be approved. The company said it has asked for an adjournment of the proceeding now underway to consider its reorganization plan.