Washington, DC, November 24--Congoleum has asked the court overseeing its bankruptcy case to extend its existing $30 million debtor-in-possession loan, according to papers filed with the Securities and Exchange Commission.
In a Form 8-K filed Tuesday with the SEC, the company said it has filed a motion with the U.S. Bankruptcy Court in Newark, N.J., seeking to extend its DIP loan with Congress Financial Corp. to June 30 from Dec. 31.
The extension calls for Congoleum to amend its current budget and place new limits on capital expenditures under its DIP loan agreement. It also contains financial covenants that the company will maintain a minimum net worth and refrain from incurring additional debt.
Interest on the Congress DIP loan is 0.75 percentage point above prime. Congress will receive a $150,000 fee upon approval of the extension by the court.
