Congoleum Corporation, headquartered in Mercerville, NJ, is a manufacturer of sheet and tile flooring products for both the residential and commercial markets. The Company owns four manufacturing facilities and distributes products throughout the U.S. and Canada.
On December 31, 2003, Congoleum filed a voluntary petition with the United States Bankruptcy Court, as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago. The Company’s proposed plan of reorganization provides for, among other things, an assignment of certain rights in, and proceeds of, Congoleum’s applicable insurance to a trust, which would fund the settlement of all pending and future asbestos claims and protect the Company from future asbestos-related litigation by channeling all asbestos claims to the Plan Trust under Section 524(g) of the Bankruptcy Code.
The Company retained SSG to provide various services to support the proposed plan or reorganization including, equity valuation for the purposes of structuring a note to be provided to the plaintiffs’ feasibility and liquidation analysis.