Congoleum Gets Reprieve in Bankruptcy Case

New York, NY, March 5, 2009--Floor covering maker Congoleum Corp has been granted a stay by a U.S. bankruptcy judge on an earlier decision ordering the dismissal of its Chapter 11 case.

On Tuesday, U.S. Bankruptcy Judge Kathryn Ferguson entered an order granting a stay of the dismissal, pending the results of an appeal.

Judge Ferguson's earlier order, entered on Feb. 26, required the company's more than five-year-old Chapter 11 case to be dismissed after 20 days.

Congoleum appealed the dismissal order to the U.S. District Court in New Jersey on Feb. 27, according to a filing with the U.S. Securities and Exchange Commission.

The company filed for bankruptcy protection in December 2003, citing a need to resolve legal claims against the company related to the use of asbestos in its products decades ago.