Congoleum looks to extend DIP facility through year-end

By Jennifer Lanning Drey

Portland, Ore., May 18 - Congoleum Corp. requested court approval of a 12th amendment to its debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of New Jersey.

Under the amendment, the lenders have agreed to extend the expiration of the financing agreements through Dec. 31, 2009.

In addition, the minimum EBITDA covenant will be modified under the amendment, according to the filing.

Congoleum will pay an extension fee of $15,000 a month and a covenant modification fee of $25,000.

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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