Congoleum Reorganization Plan Finally Approved

Congoleum

Mercerville, NJ, June 9, 2010--Congoleum said that its reorganization plan has been approved by the District Court of New Jersey and that the company should emerge from bankruptcy soon.

"I am absolutely elated to see Congoleum's plan confirmed at last," said Chairman Roger S. Marcus

"It has been a long, difficult journey out of the complicated asbestos and insurance litigation we faced nearly nine years ago. I could not be happier about putting this chapter of our history behind us."

"Consummation of our reorganization requires various transactions such as closing on our new financing arrangements. While we have been working on these steps, we could not complete them until the confirmation order was entered. We expect to complete these remaining steps and emerge from bankruptcy shortly."

The plan gives ownership of the company to noteholders and people seeking compensation for illnesses associated with the company's asbestos-laden floor tiles.

Congoleum sought Chapter 11 protection Dec. 31, 2003, in Trenton, N.J., to deal with the thousands of lawsuits brought by people seeking compensation for illnesses they said they'd suffered as a result of their exposure to Congoleum's asbestos-laden floor tiles.

The company will give 50.1% of the stock in the reorganized Congoleum to a trust set up for the benefit of holders of asbestos personal injury claims. The trust will also get approximately $235 million from court-approved asbestos insurance settlement agreements. And the trust will get rights to additional asbestos coverage not the subject of any settlement.

The remaining stock in the reorganized company will go to holders of senior note claims. And the reorganized Congoleum will issue $33 million in new notes to noteholders.



Other Archived Articles

Trade Sales & Manufacturer Shipments Edge Down in January   Full Article
Washington, DC, March 12, 2015—The combined value of distributive trade sales and manufacturers’ shipments for January was estimated at $1,302.5 billion, down 2.0% from December 2014 and down 0.3% from January 2014, says the Commerce Department.

Retail Trade Sales Down from Previous Month But Up YOY   Full Article
Washington, DC, March 12, 2015—Retail trade sales were down 0.6% (±0.5%) from January 2015 but up 1.0% (±0.9%) over 2014, says the Commerce Department.

LL's Free Air Quality Testing Won't Meet CARB Standards   Full Article
New York, NY, March 12, 2015—Lumber Liquidators will offer free indoor air quality testing for its consumers--conducted to workplace standards,-- but OSHA's thresholds for formaldehyde in the workplace are not as stringent as CARB's for the home.

Parterre's Vertu Resilient Plank Wins ADEX Recognition   Full Article
Wilmington, MA, March 12, 2015—Parterre’s Vertu Resilient Plank won two ADEX awards.

Consumer Survey Reveals Optimism about Housing Market   Full Article
Washington, DC, March 12, 2015—Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment, according to results from Fannie Mae's February 2015 National Housing Survey.

Millennials Account for Largest Share of Home Buyers, Says NAR   Full Article
Washington, DC, March 12, 2015—The millennial generation represented the largest share of recent buyers, according to the 2015 National Association of Realtors Home Buyer and Seller Generational Trends study.

Three Tarkett Rubber Textures Win ADEX Platinum   Full Article
Chagrin Falls, OH, March 12, 2015—Tarkett received the Platinum Award for Design Excellence (ADEX) for its new range of rubber textures: Brushed, Concrete and Leather.

Fuse Alliance Focuses on Digital Marketing to Raise Awareness   Full Article
Laguna Niguel, CA, March 12, 2015—Fuse Alliance, a member-owned organization of professional, commercial flooring contractors, unveiled a next generation public facing website that clarifies the group's target audience and services offered.

U.S. Container Imports Down Over 5% in 2015   Full Article
Minneapolis, MN, March 12, 2015—Total U.S. container imports are down over 5% this year, compared to January and February of 2014, reports Zepol. Nearly the entire decline in imports is attributed to the West Coast ports of Los Angeles and Long Beach.

Armstrong Top Execs Offered Retention Award to Stay Through Spinoff   Full Article
Lancaster, PA, March 11, 2015—Armstrong World Industries is giving three of its top executives an incentive to stay at the company through the spinoff of its flooring business into a new, independent company next year, reports Lancaster Online.

Small Business Optimism Edges Upward   Full Article
New York, NY, March 11, 2015—U.S. small business optimism edged up in February amid signs of tightening labor market conditions, bolstering the view that a recent slowdown in economic activity will be temporary, reports Reuters.

LL Class Action Lawsuits Extend Beyond Formaldehyde Issue   Full Article
Toana, VA, March 11, 2015—Lumber Liquidators is currently facing at least 12 class action lawsuits.

Foreclosure Inventory Fell 33.2% Year Over Year   Full Article
Irvine, CA, March 11, 2015—CoreLogic's January 2015 National Foreclosure Report reveals U.S. foreclosure inventory declined 33.2% from January 2014, and completed foreclosures declined 22.5%, reports World Property Journal.

The Floor Store Earns Sixth Armstrong Elite Retailer Recognition   Full Article
Lancaster, PA, March 10, 2015—The Floor Store’s new San Francisco, California showroom has been named an Elite Retailer by Armstrong, the chain’s sixth location to earn the distinction.

Wholesale Inventories Up Slightly   Full Article
Washington, DC, March 10, 2015—Wholesale inventories were up 0.3% to $548.7 at the end of January, says the U.S. Census Bureau.

Job Openings Figure Virtually Flat   Full Article
Washington, DC, March 10, 2015—There were 5.0 million job openings on the last business day of January, little changed from 4.9 million in December, the U.S. Bureau of Labor Statistics reports.

NWFA's Wood Flooring Expo Recognized for Growth   Full Article
St. Louis, MO, March 10, 2015—The National Wood Flooring Association’s Wood Flooring Expo has been recognized as one of the 50 fastest-growing shows in the U.S. by Trade Show Executive magazine.

Milliken Recognized As Ethical Company for 9th Consecutive Year   Full Article
Spartanburg, SC, March 10, 2015—Milliken has once again been recognized as a 2015 World’s Most Ethical Company by the Ethisphere Institute.

LL Schedules First Investor Call Following 60 Minutes Broadcast   Full Article
Toano, VA, March 10, 2015—Lumber Liquidators has announced that it will host an investor call on Thursday, March 12 at 10:00 a.m. EST.

Armstrong LVT with I-Set Wins ADEX Platinum   Full Article
Lancaster, PA, March 10, 2015—Armstrong Commercial Flooring's Natural Creations Luxury Vinyl Tile with the I-Set Installation System recently received the Platinum Award for Design Excellence (ADEX).