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Breaking Flooring News

Bankruptcy judge stays order of dismissal in Congoleum case

March 6, 2009

According to documents filed by Congoleum with the U.S. Securities and Exchange Commission, the U.S. Bankruptcy Court for the District of New Jersey stayed an order recently to dismiss Congoleum's more than five-year-old Chapter 11 bankruptcy case. The stay was ordered by U.S. Bankruptcy Judge Kathryn Ferguson, which reversed her decision on Feb. 26 to dismiss the Chapter 11 case after 20 days. The stay was granted pending an appeal.

In her Feb. 26 opinion, Judge Ferguson cited issues regarding certain legal fees as a reason to dismiss the case. If the case had been dismissed, Congoleum would have lost protection from creditors and been forced to address the claims in civil court.

Asked to comment on the newest developments in Congoleum's bankruptcy case, the company's sr. vp sales and marketing, Dennis Jarosz, declined.

The case number is 03-51524.
KEYWORDS: business management

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