Armstrong plan confirmation denial upheld by appeals court

By Caroline Salls

Pittsburgh, Jan. 3 - Armstrong Holdings, Inc. said the U.S. Court of Appeals for the Third Circuit upheld a U.S. District Court order denying confirmation of the company's plan of reorganization after Armstrong World appealed the district court's ruling that the distribution of warrants to current Armstrong stockholders under the plan was not permissible.

According to a company news release, Armstrong World is considering its next steps and has been investigating other options to resolve its Chapter 11 case with the representatives of its creditor groups.

The company said it is unable to predict when it will emerge from Chapter 11, what payouts its major classes of creditors will receive, or whether its existing shareholders will receive any recovery from the case.

Armstrong World also said it is continuing to monitor proposed reform legislation in Congress addressing asbestos personal injury claims, which could substantially affect the company's liabilities, if enacted.

Armstrong, a Lancaster, Pa., floor covering maker, filed for bankruptcy on Dec. 6, 2000 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 00-04771.

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