Congoleum Files Modified Reorganization Plan

Mercerville, NJ, Feb. 15, 2010--Congoleum Corporation said it has filed a modified reorganization plan and disclosure statement with the U.S. District Court.

The plan was filed jointly with the official asbestos claimants' committee, the official committee of bondholders, and the futures representative.

A hearing has been scheduled for March 12.

Congoleum previously said that it has reached a $100 million settlement with nine insurance groups and the New Jersey insurance guaranty associations, and a hearing to approve that settlement is scheduled for Feb. 19.

A settlement with another insurer for $2.1 million has been reached and will also be heard on that date.

Congoleum will additionally be seeking approval of the $25 million settlement it reached in 2006 with Travelers.

Another 12 insurance settlements totaling $82 million are in force and have already received court approval. Net proceeds from these settlements are payable to the plan trust that will be formed for asbestos claimants after a plan becomes effective.