Mercerville, NJ, April 26, 2006--Congoleum Corp., said it has received a letter from the American Stock Exchange (Amex) indicating that it does not meet the minimum income and stockholders' equity requirements for continued listing on the Amex.
Specifically, Congoleum is not in compliance with Section 1003(a)(i) of the Amex Company Guide, with stockholders' equity of less than $2,000,000 and losses from continuing operations and/or net losses in two of its three most recent fiscal years; and Section 1003(a)(ii) of the Amex Company Guide, with stockholders' equity of less than $4,000,000 and losses from continuing operations and/or net losses in three of its four most recent fiscal years.
The letter also stated that the Company must submit a plan by May 22, 2006 advising the Amex of actions it has taken or will take to achieve compliance with the continued listing standards within eighteen months, and that this plan must be approved by the Amex, for Congoleum to maintain its listing.
Roger S. Marcus, chairman of the board, commented "We intend to submit a plan to the Amex shortly that responds to this notification. Congoleum would have had positive net income in three of the last four years, and would have been in compliance with the Amex's listing requirements, were it not for the special charges in connection with our asbestos-related reorganization. I believe we are making progress toward confirmation of a reorganization plan this year and putting this very costly proceeding behind us. I also am hopeful that we will demonstrate to the Amex that there are extenuating circumstances and that the financial performance of our operating business warrants a continued listing of our shares."
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.
