Armstrong prepares to emerge from bankruptcy
It appears that Manor Township-based Armstrong World Industries Inc.ís lengthy stay under bankruptcy protection soon will end.It appears that Manor Township-based Armstrong World Industries Inc.ís lengthy stay under bankruptcy protection soon will end. The Lancaster County company announced today that a federal judge has approved its reorganization plan. Armstrong expects to emerge from bankruptcy during late 2006, according to a company statement. Armstrong filed for Chapter 11 bankruptcy in 2000 under the weight of lawsuits filed by people suffering from asbestos-related illnesses.
The reorganization plan calls for Armstrong to establish a trust to pay asbestos personal-injury claimants. The company will fund the trust through a one-time contribution of cash, notes and common stock in the reorganized company. The contribution is valued at approximately $1.8 billion. The plan also calls for the companyís unsecured creditors to receive distributions equal to approximately 59.5 percent of their allowed claims. Armstrong designs and manufactures flooring, ceilings and cabinets.