Bankruptcy Court Judge Kathryn C. Ferguson rescheduled a hearing in the Congoleum Corp. case on a rival reorganization plan proposed by attorneys representing clients who have been exposed to asbestos in the firm’s products, Bankruptcy Law360 reported yesterday. The hearing, originally scheduled for last Thursday, was pushed back to Nov. 8th. That delay is yet another roadblock to the company’s push to emerge from bankruptcy protection this year. Congoleum faced another setback in May after a judge ruled that insurers are not required to fund the global asbestos settlement at the heart of the flooring manufacturer’s proposed bankruptcy plan. The company has said it hopes to file a new plan with the bankruptcy court later this year.
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Ronco Corp. is seeking bankruptcy court approval to enter into a loan with Laurus Master Fund Ltd. so that it can stay afloat during its chapter 11 case, the Associated Press reported yesterday. The company said the loan would reduce its prepetition secured debt by $1.6 million and provide it with $500,000 in cash. Ronco owes Laurus $4.6 million under a prepetition revolving loan. Simi Valley, Calif.-based Ronco filed for chapter 11 protection on Thursday with the U.S. Bankruptcy Court in Woodland Hills, Calif., listing $13.9 million in assets and $32.7 million in debt.
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Georgia builder Meyer-Sutton Homes Inc. said that it filed for bankruptcy protection yesterday as a result of the “sudden and dramatic” decline in business, the Associated Press reported today. Meyer-Sutton listed total assets of about $44 million and debts of $40 million in its bankruptcy petition. Meyer-Sutton Homes and its affiliate Meyer-Sutton Land Acquisition Inc., which also filed for chapter 11 protection, are both owned by James W. Buchanan. “The housing market has suffered a dramatic decline in demand, with the result problems of excess inventory and compressed profit margins,” Buchanan said. According to its bankruptcy filing, the company has cut new construction starts to two per month from 25 per month. Meyer-Sutton owes its bank lenders about $26.5 million and its trade creditors $2.8 million. It’s largest unsecured creditor, Atlanta’s Stock Building Supply, is owed $1.3 million.

 See Also:  Chapter 7 Bankruptcy