Mercerville, NJ, November 21, 2006--Congoleum Corp. said its lender has agreed to lower the interest rate, increase borrowing availability and extend the maturity of its debtor-in-possession loan, according to Dow Jones.
The news service said the company, which has been operating under Chapter 11 bankruptcy protection since 2003, said in a filing with the Securities and Exchange Commission that it would pay the lender a $100,000 fee for the amendments.
The loan from Wachovia Bank will now mature on June 30, 2007, or when the company's Chapter 11 reorganization plan takes effect, whichever is earlier.
Congoleum in the filing said the amendments will take effect on Nov. 27 if no objections are filed with the U.S. Bankruptcy Court in Trenton, N.J.
The company has been battling with insurance companies over its Chapter 11 reorganization plan, which would set up a trust funded by insurance proceeds to repay victims of exposure to the company's asbestos-containing products.
Congoleum has brought in about $207 million from settlements with insurers to fund the trust, but another group of insurers has refused to settle and has proposed its own reorganization plan for the company.
According to Monday's SEC filing, Congoleum is now trying to get the 11th version of its reorganization plan approved.
