Mercerville, N.J.— Congoleum Corp. has filed a new reorganization plan in its Chapter 11 bankruptcy proceedings. The resilient company is hoping this arrangement allows it to exit free of any existing or future asbestos claims.

A hearing is scheduled for Feb. 14 to consider the adequacy of the disclosure statement describing the plan.

There are three important points with regard to the new reorganization plan: 1) The plan appears to be conscentual with all parties—except the insurers; 2) It includes all the public stock going to the plaintiffs and the bondholders, whereas previous plans had 51% going to the plaintiffs and the remaining 49% staying public, and 3) Congoluem’s current management team will remain intact.

In effect, if the plan is approved, a trust will be created that assumes the liability for Congoleum’s current and future asbestos claims. This trust will receive the proceeds of various settlements Congoleum has reached with a number of insurance carriers and will be assigned Congoleum’s rights under its remaining policies covering asbestos product liability. The trust will also receive 50.1% of the newly issued common stock in reorganized Congoleum when the plan takes effect.

If approved, which could happen as early as the third quarter, Roger Marcus, Congoleum’s chairman, said “the resilient manufacturer will look a lot more healthy as a company. This enables Congoleum to keep operating as a viable entity.”

He noted that he was “disappointed the current plan does not provide the recoveries for bondholders and shareholders that we had sought in earlier plans. It reflects the economic reality of what can be done and the hierarchy of recoveries under bankruptcy codes.”

Despite the various issues affecting the new deal, Marcus said he is “excited about the future potential of Congoleum without the distractions we’ve faced over the last five years. I plan both to see this company through its bankruptcy and to be a part of its future growth thereafter.”

Conogoleum originally filed a voluntary bankruptcy petition back on Dec. 31, 2003 as a way to resolve claims asserted against it related to the use of asbestos in its decades ago.

More information related to the amended plan will be available on the investor relation section of the company’s Web site, congoleum.com.