Mercerville, NJ, May 14--Congoleum Corp. got bankruptcy-court approval of its Chapter 11 plan disclosure statement, according to its quarterly report filed Friday with the Securities and Exchange Commission.
The flooring company, which sought bankruptcy protection in 2003 to settle personal injury asbestos claims, said the court also set a hearing for July 22 to approve the company's reorganization plan.
As reported, several of Congoleum's insurance companies had challenged the company's disclosure statement, which outlines how it plans to repay creditors and emerge from bankruptcy protection.
The U.S. Bankruptcy Court in Newark, NJ ruled in April that the insurance companies don't have legal standing to oppose the disclosure statement. But the court didn't preclude those companies from bringing objections to the turnaround plan itself.
Congoleum proposes funding its turnaround with settlements it might win in lawsuits against its insurance companies. Congoleum has said its insurance policies should cover the asbestos claims filed against it.
In a news release on Monday, the company posted a net loss of $435,000, or $0.05 a share, compared with $2.6 million, or $0.31 a share, in the quarter ended March 31, 2003.
Congoleum filed for bankruptcy protection Dec. 31, 2003, listing $187.1 million of assets and $205.9 million in debts as of Sept. 30, 2003. American Biltrite Inc. (ABL) owns 95.4% of the company's Class B common stock, giving it a 55% stake in Congoleum.
