Congoleum Corp. seeks bondholders' consent to amend indenture
Congoleum Corp. has announced that it is seeking bondholders' approval of certain amendments to the indenture governing its 8 5/8 percent senior notes due 2008.
These amendments reflect the finalization of negotiations with representatives of certain asbestos personal injury claimants regarding the expected principal economic terms of the company's anticipated pre-packaged Chapter 11 plan of reorganization.
The amendments to the indenture would expressly permit Congoleum to issue a
promissory note to the plan trust as part of the company's anticipated
pre-packaged Chapter 11 plan of reorganization. The promissory note will be
subordinated to the company's 8 5/8 percent senior notes and its revolving credit facility, Congoleum says.