Mercerville, NJ, Dec. 19--Congoleum Corp. today announced that it has extended the deadline for votes to be submitted on the approval of its pre-packaged Chapter 11 plan of reorganization until 5:00 p.m. Eastern Time on December 24.
The parties entitled to vote on the plan are asbestos personal injury claimants, Congoleum's secured lender and its majority shareholder. The deadline for completing the voting process has been extended to allow Congoleum to clarify the plan based upon discussions with Congoleum's secured lender concerning its treatment under the plan.
The voting extension should not affect Congoleum's plans to commence bankruptcy proceedings in late December and seek bankruptcy court confirmation of the plan as promptly as possible thereafter.
As previously announced, under the terms of the plan, when confirmed, Congoleum will contribute certain insurance rights and a note for approximately $2.7 million (subject to a future revaluation) to a trust to be formed pursuant to the plan for the benefit of asbestos personal injury claimants, and all current and future asbestos claims against Congoleum will be channeled to the trust.
Under the terms of the plan, Congoleum's other creditors will be paid in full and its shareholders will maintain their equity holdings in Congoleum. Copies of the plan and disclosure statement have previously been filed by Congoleum with the Securities and Exchange Commission. They can also be obtained by visiting Congoleum's website at http://www.congoleum.com/investor_relations/investor_1.shtml.
