Flooring giant, Congoleum Corp.’s bankruptcy reorganization plan was approved Tuesday by a U.S. District bankruptcy court.
Congoleum sought Chapter 11 protection Dec. 31, 2003 as a result of its own asbestos-laden floor tiles which it sold for decades. As a result, thousands of asbestos victim claims were pending against the floor tile manufacturer at the time of the filing. Inhalation of asbestos fibers, even from the cutting, scraping or sanding of asbestos containing floor tiles, can result in malignant mesothelioma, a cancer of the lining of the lung as well as lung cancer.
Under the plan, the company will give 50.1% of the stock in the reorganized Congoleum to a trust to pay present and future asbestos victims. The trust will also get approximately $235 million from court-approved asbestos insurance settlement agreements as well as additional asbestos insurance coverage funds.