Mercerville, NJ, September 7, 2006--Congoleum Corp, reported today that the official committee representing its bondholders has reached an agreement in principle with both the company and the asbestos claimants' representatives on certain amendments to Congoleum's pending plan of reorganization.
As a result, the official bondholders committee has agreed to support Congoleum's reorganization plan and will be withdrawing the plan of reorganization it had previously filed jointly with Continental Casualty Company and Continental Insurance Company.
Roger S. Marcus, chairman of the board, commented, "We are extremely pleased to have a proposed plan supported by the bondholders' committee and the asbestos claimants' representatives, and expect to have our new plan filed with the court by September 15, 2006. A disclosure statement hearing on the plan has been scheduled for October 19, 2006. With all official committees and representatives of future asbestos claims now on board, our confirmation process should be easier and less expensive, and I am optimistic that the plan will be confirmed in early 2007. I appreciate the efforts made by the Court-appointed mediators to bring us to this point."
The agreement in principle is subject to mutually agreeable definitive documentation which will be submitted to the Bankruptcy Court as part of a new amended plan of reorganization. Readers should refer to the complete plan of reorganization and disclosure statement when it becomes available for details regarding the plan of reorganization.
Copies of the modified plan and disclosure statement will be filed by Congoleum with the Securities and Exchange Commission as exhibits to a filing under the Securities Exchange Act of 1934. They will also be available on the investor relations section of Congoleum's website at www.congoleum.com.
On December 31, 2003, Congoleum Corporation filed a voluntary petition with the United States Bankruptcy Court for the District of New Jersey (Case No. 03-51524) seeking relief under Chapter 11 of the United States Bankruptcy Code as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago.
