Congoleum Chapter 11 plan confirmation hearing rescheduled for Jan. 8

By Sarah Lizee

Olympia, Wash., Dec. 2 – Congoleum Corp.’s hearing on confirmation of its Chapter 11 plan of liquidation has been rescheduled to Jan. 8 from Dec. 17, according to a docket entry filed Wednesday in the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, the company received interim approval of the disclosure statement for the plan on Nov. 11.

The plan vests all liquidation trust assets in a liquidation trust for the purpose of distribution to holders of allowed claims, as previously reported.

Holders of administrative claims, professional fee claims, DIP claims, secured tax claims, priority tax claims, other secured claims and other priority claims will be paid in full in cash under the plan.

Holders of prepetition senior note claims and prepetition exchanged note claims received payment in the form of a $28.5 million credit bid for substantially all of the debtors’ assets. The remaining prepetition senior note claims and prepetition exchanged note claims are waived.

Holders of allowed general unsecured claims will receive their pro rata share of beneficial trust interests, which will entitle holders to receive their pro rata share of the liquidation trust assets.

Existing interests will be canceled without any distribution.

Congoleum is a Mercerville, N.J.-based flooring company. It filed bankruptcy on July 13 under Chapter 11 case number 20-18488.

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