Congoleum Corporation Obtains Approval of Interim Financing, Authorization to Pay Trade.Business Editors MERCERVILLE, N.J.--(BUSINESS WIRE)--Jan. 9, 2004 Congoleum Corporation (AMEX AMEX See: American Stock Exchange :CGM (1) (Computer Graphics Metafile) An ISO/IEC standard format for 2D graphics images introduced in 1987. Primarily a vector graphics format for technical illustrations and geophysical visualizations, CGM also supports raster graphics and text. ) announced today that the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. has issued an interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. order approving its Debtor-in-Possession revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The court also authorized Congoleum to pay its suppliers in the ordinary course of business for amounts owed on account of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. supplied prior to Congoleum's December 31, 2003 bankruptcy filing. Congoleum 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. The Debtor-in-Possession credit facility is extended by Congress Financial and provides up to $30 million in revolving credit based upon advance formulas against inventory and receivables at a rate of three-quarters of a percent over prime. Terms of the facility are substantially similar to those of the revolving credit facility Congoleum had with Congress prior to the bankruptcy filing. A hearing on the final approval of the Debtor-in-Possession financing will be held on February 2, 2004. Roger S. Marcus, Chairman of the Board, commented "We had our first day in court this week to seek approval for a number of motions related to operating our business. We were pleased with the outcome of the hearings, particularly with respect to honoring commitments to our suppliers. While we have a long journey ahead of us, this was a good first step on the road to getting our plan confirmed." A copy of the interim court order approving the Debtor-in-Possession credit facility has been filed with the Securities and Exchange Commission as an exhibit to a Form 8-K. Copies of the plan of reorganization and disclosure statement have also been filed with the Securities and Exchange Commission as exhibits to a Form 8-K. They can also be obtained by visiting Congoleum's website at http://www.congoleum.com/investor_relations/investor_1.shtml. Congoleum Corporation is a leading manufacturer of resilient flooring, serving both residential and commercial markets. Its sheet and tile products are available in a wide variety of designs and colors, and are used in remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling , manufactured housing, new construction and commercial applications. The Congoleum brand name is recognized and trusted by consumers as representing a company that has been supplying attractive and durable flooring products for over a century. |
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