Congoleum obtains asbestos claimants' approval of pre-packaged bankruptcy

Congoleum Corp. has obtained the asbestos claimant votes necessary for approval of its pre-packaged Chapter 11 plan of reorganization, and has proceeded with its bankruptcy filing in Trenton, N.J. Congoleum will now seek bankruptcy court confirmation of the plan as promptly as possible. The company is pursuing a pre-packaged bankruptcy proceeding as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago.

Under the terms of the plan, when confirmed, Congoleum will contribute certain insurance rights and a note for approximately $2.7 million (subject to a future revaluation) to a trust to be formed pursuant to the plan for the benefit of asbestos personal injury claimants. All current and future asbestos claims against Congoleum will be channeled to the trust and Congoleum will have no further liability for such claims.