Mercerville, NJ, June 12, 2006--Congoleum said its shares will continue to trade on the American Stock Exchange based upon a plan the company submitted to the Amex.
Roger S. Marcus, chairman of the board, commented: "As we explained to the Amex, we would have been in compliance with the listing requirements were it not for the special charges in connection with our asbestos-related reorganization. We are working diligently toward obtaining confirmation of our plan of reorganization and ending the extraordinary costs associated with that process, which we hope to conclude late this year or early in 2007. We appreciate the willingness of the Amex to continue our listing as we seek to accomplish this goal."
The Amex determined that Congoleum has "made a reasonable demonstration of its ability to regain compliance with the continued listing standards" of the Amex and will continue to list Congoleum's Class A common stock pursuant to an extension. The continued listing is subject to Congoleum complying with the progress described in its plan to achieve compliance which was submitted to the Amex. Compliance with the continued listing requirements must be attained no later than October 13, 2007. As previously reported, the Amex had notified Congoleum that it was 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.
On December 31, 2003, Congoleum Corporation filed a voluntary petition with the United States Bankruptcy Court for the District of New Jersey 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.
