Congoleum DIP amendment approved to extend term, change minimum EBITDA

By Caroline Salls

Pittsburgh, Dec. 20 - Congoleum Corp. obtained approval of an amendment to its debtor-in-possession facility that extends the term and modifies the minimum EBITDA covenant, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

This is the fourth amendment to the DIP.

Under the amendment, the DIP term was extended to Dec. 31, 2006 from Dec. 31, 2005.

Also, the minimum EBITDA is required to be $20 million for the four quarters ending March 31, June 30, 2006, Sept. 30, 2006 and Dec. 31, 2006.

If excess availability is $15 million for each of the 90 consecutive days immediately preceding the last day of the period, then the company is not required to comply with the minimum EBITDA covenant.

Congoleum, a Mercerville, N.J.-based flooring company, filed for bankruptcy on Dec. 31, 2003. Its Chapter 11 case number is 03-51524.

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