Congoleum Files for Chapter 11 Protection

Congoleum Corp., a flooring maker whose shares have plunged as asbestos-related lawsuits against the company increased, filed for Bankruptcy Court protection with a plan in place to resolve the disputes, pay creditors and reorganize.

Congoleum has reached settlements with a large majority of the asbestos claimants suing it, court papers show.

With the negotiations completed, Congoleum filed a so-called prepackaged Chapter 11 at Bankruptcy Court in Trenton, N.J.

The Mercerville, N.J.-based company listed $187.1 million in assets and $205.9 million in debts in the filing.

American Biltrite Inc., which owns a 55% stake in Congoleum, isn’t part of the bankruptcy filing, according to court papers.

From Bloomberg News