Armstrong World Industries, former parent settle all inter-company and tax issues

By Caroline Salls

Pittsburgh, Feb. 26 - Armstrong Holdings, Inc. and former subsidiary Armstrong World Industries, Inc. have reached a settlement of all inter-company claim and tax issues, according to a news release.

The settlement calls for Armstrong World Industries to pay Holdings $20 million in cash and gives Holdings an $8.5 million unsecured claim under Armstrong World Industries' confirmed plan of reorganization.

The settlement also gives Armstrong World Industries the right to make all relevant tax elections and file all required tax returns on behalf of the Armstrong group of companies for all tax periods during which the two companies were affiliated, and to receive and retain all related tax refunds.

According to the release, the initial distribution of the $8.5 million Holdings claim will consist of $2 million in cash and 98,690 shares of reorganized Armstrong World Industries.

The settlement is subject to approval by the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for April 2.

Armstrong World Industries, a Lancaster, Pa., manufacturer of floors, ceilings and cabinets, emerged from bankruptcy on Oct. 2.

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