Congoleum Amends Asbestos Settlement Pact
Mercerville, NJ, June 10--Congoleum Corp. agreed to amend the asbestos claims settlement it signed in April to allow more time for parties to review and respond to information required in order to participate in the settlement.
In a press release Monday, the maker of sheet and tile flooring said the amendment postpones its anticipated Chapter 11 filing until September.
On April 10, Congoleum reached and agreement with attorneys representing more than 75% of the known present claimants with asbestos claims pending against the company. The agreement contemplates a Chapter 11 reorganization seeking confirmation of a prepackaged plan that would leave non-asbestos creditors unimpaired and would resolve all pending and future personal-injury asbestos claims against Congoleum and its distributors and affiliates.
Approval of the reorganization plan would require the approval of at least 75% of the asbestos claimants with claims against Congoleum who vote on the plan.
According to a Securities and Exchange filing in April, Congoleum estimated its gross liability to cover judgments or settlements of known asbestos claims would total at least $310 million.