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Thu, June 10, 2010
Wed, June 9, 2010
Tue, June 8, 2010 Congoleum Corporation Plan of Reorganization Confirmed
MERCERVILLE, NJ--(Marketwire - June 8, 2010) - Congoleum Corporation (
Roger S. Marcus, Chairman of the Board, commented, "I am absolutely elated to see Congoleum's plan confirmed at last. It has been a long, difficult journey out of the complicated asbestos and insurance litigation we faced nearly nine years ago. I could not be happier about putting this chapter of our history behind us."
"Through their dedication and hard work, the employees of Congoleum have seen this company through not only this bankruptcy but also the worst economic downturn in a generation. This confirmation order rewards their efforts in putting our asbestos problems behind us, reducing our other debt, and giving the company a fresh start toward prosperity in the future."
Mr. Marcus concluded, "Consummation of our reorganization requires various transactions such as closing on our new financing arrangements. While we have been working on these steps, we could not complete them until the confirmation order was entered. We expect to complete these remaining steps and emerge from bankruptcy shortly."
The above news release contains certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties and assumptions. These statements can be identified by the use of the words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project" and other words of similar meaning. In particular, these include statements relating to intentions, beliefs or current expectations concerning, among other things, future performance, results of operations, the outcome of contingencies such as bankruptcy and other legal proceedings, and financial conditions. These statements do not relate strictly to historical or current facts. These forward-looking statements are based on Congoleum's expectations, as of the date of this release, of future events, and Congoleum undertakes no obligation to update any of these forward-looking statements.
Although Congoleum believes that these expectations are based on reasonable assumptions, within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Readers are cautioned not to place undue reliance on any forward-looking statements. Any or all of these statements may turn out to be incorrect. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements made in this press release speak only as of the date of such statement. It is not possible to predict or identify all factors that could potentially cause actual results to differ materially from expected and historical results. Factors that could cause actual results to differ from expectations include: (i) the costs relating to the execution and implementation of the plan of reorganization, (ii) timely consummation of the transactions necessary pursuant to Congoleum's plan of reorganization, (iii) Congoleum's ability to consummate exit financing sufficient to provide it with funding that may be needed for its operations after emerging from the bankruptcy process, in each case, on reasonable terms, (iv) increases in raw material and energy prices or disruption in supply, (v) increased competitive activity from companies in the flooring industry, some of which have greater resources and broader distribution channels than Congoleum, (vi) increases in the costs of environmental compliance and remediation or the exhaustion of insurance coverage for such expenses, (vii) unfavorable developments in the national economy or in the housing industry in general, including developments arising from the war in Iraq and Afghanistan and from the tightening of credit availability, (viii) shipment delays, depletion of inventory and increased production costs resulting from unforeseen disruptions of operations at any of Congoleum's facilities or distributors, (ix) product warranty costs, (x) changes in distributors of Congoleum's products, and (xi) Congoleum's interests may not be the same as its present controlling shareholder, American Biltrite Inc. In any event, if Congoleum is not successful in consummating the effectiveness of its plan of reorganization, such failure would have a material adverse effect upon its business, results of operations and financial condition. In the event that the confirmed plan becomes effective holders of existing common shares of Congoleum will receive nothing on account of their interests and their shares will be cancelled. Actual results could differ significantly as a result of these and other factors discussed in Congoleum's annual report on Form 10-K for the year ended December 31, 2009 and subsequent filings made by Congoleum with the Securities and Exchange Commission.
