Armstrong prepares to emerge from bankruptcy

It appears that Manor Township-based Armstrong World Industries Inc.’s lengthy stay under bankruptcy protection soon will end.

It appears that Manor Township-based Armstrong World Industries Inc.’s 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 company’s unsecured creditors to receive distributions equal to approximately 59.5 percent of their allowed claims. Armstrong designs and manufactures flooring, ceilings and cabinets.

CPBJ Business Events

2019 Reader Rankings Awards

Wednesday, June 19, 2019
2019 Reader Rankings Awards

2019 Women of Influence

Monday, June 24, 2019
2019 Women of Influence

2019 Real Estate & Development Symposium

Wednesday, August 07, 2019
2019 Real Estate & Development Symposium

2019 Top 50 Fastest Growing Companies

Monday, September 09, 2019
2019 Top 50 Fastest Growing Companies