The Amex warns Congoleum of noncompliance; company claims extenuating circumstances due to reorganization plan

Congoleum Corp. announced that it has received a letter from the American Stock Exchange (the Amex) warning the company that it does not meet minimum income and stockholders' equity requirements to stay listed. Additionally, the Amex said that it expects Congoleum to file a plan by May 22 advising the stock exchange of what steps Congoleum will take to achieve compliance. Congoleum noted that the primary reason for the company's noncompliance with the Amex is the continuing reorganization effort spurred by asbestos liabilities.

"We intend to submit a plan to the Amex shortly that responds to this notification," said Roger S. Marcus, Congoleum chairman of the board, in a press statement. "Congoleum would have had positive net income in three of the last four years and would have been in compliance with the Amex's listing requirements were it not for the special charges in connection with our asbestos-related reorganization.