Congoleum takes another step forward, settles insurance dispute
Congoleum Corp. said it has reached a settlement agreement with one of its excess insurance carriers over coverage for asbestos-related claims. Under the terms of the settlement, certain AIG companies will pay $103 million over ten years to the trust to be formed upon confirmation of Congoleum's proposed amended plan of reorganization. The settlement resolves coverage obligations of policies with a total of $114 million in liability limits for asbestos bodily injury claims, and is subject to final court approval and effectiveness of Congoleum's proposed amended plan of reorganization.