Congoleum Corporation is a subsidiary of American Biltrite Inc. Congoleum is a flooring manufacturer whose products contained asbestos. Congoleum filed for bankruptcy protection on Dec. 31, 2003. The Mercerville, N.J.-based flooring company is facing thousands of asbestos-related personal injury claims, including claims by mesothelioma victims.
Congoleum recently reached a tentative deal with bondholders and asbestos claimants’ representatives on the terms of its Chapter 11 reorganization plan. Congoleum said its bondholders have agreed to withdraw a reorganization plan they filed and support Congoleum’s own turnaround plan. The official committee of bondholders had previously supported the Chapter 11 plan it proposed along with insurers Continental Casualty Co. and Continental Insurance Co. Congoleum said it will file a new reorganization plan with the court by Friday and expects to seek approval of the plan’s disclosure statement at an Oct. 19 hearing in the U.S. Bankruptcy Court in Trenton, N.J.
The U.S. Bankruptcy Court in Trenton, N.J. approved a insurance settlement that will add $16.95 million to Congoleum Corp.’s trust to pay victims who were exposed to the company’s asbestos-containing products. Congoleum said the deal brings total insurance settlements in the case to about $207 million. The company will use the settlement money to fund a trust to repay asbestos victims, including claims by mesothelioma victims.