Congoleum to receive $40 million under Chartis lawsuit settlement

By Caroline Salls

Pittsburgh, April 22 - Congoleum Corp. has reached a $40 million insurance lawsuit settlement with the Chartis Cos., according to a company news release.

Specifically under the agreement, Chartis has agreed to pay $40 million over a period of six years in exchange for a buyback of subject insurance policies.

The $40 million will be paid into the trust formed by Congoleum's plan of reorganization for distribution to asbestos claimants.

"With this latest settlement, we have now resolved all of our insurance litigation and moved one step closer to completing our reorganization," Congoleum chairman of the board Roger S. Marcus said in the release.

"I look forward to the confirmation hearing on our plan that is scheduled for June and believe we can emerge from bankruptcy shortly thereafter."

The settlement is subject to court approval and other conditions.

A hearing is scheduled for May 10.

Congoleum, a Mercerville, N.J.-based flooring company, filed for bankruptcy on Dec. 31, 2003 in the U.S. Bankruptcy Court for the District of New Jersey. Its Chapter 11 case number is 03-51524.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.