Units of St. Paul Travelers Cos. Inc. have agreed to pay $25 million to Congoleum Corporation to settle a coverage dispute over the flooring manufacturer’s asbestos-related liabilities, according to St. Paul.

Under the agreement, once the US Bankruptcy Court in Trenton, NJ, approves Mercerville, NJ-based Congoleum’s latest reorganisation plan, the $25 million will be put into a trust largely funded by insurance proceeds to repay those who have become ill from the company’s asbestos-containing products.

Congoleum, which filed for bankruptcy in 2003, previously announced settlements for its asbestos-related claims with New York-based American International Group Inc., Boston-based Liberty Mutual Insurance Co. and Londonbased Equitas Ltd., among others.