Armstrong World Industries told reorganization plan will not be approved before August

By Jennifer Lanning Drey

Eugene, Ore., May 24 - Judge Judith Fitzgerald told Armstrong World Industries, Inc. that a decision on whether to approve the company's modified fourth amended reorganization plan will not be made until at least August, according to Beth Riley, director of investor relations for Armstrong.

A hearing on the plan began Tuesday in the U.S. Bankruptcy Court for the District of Delaware and is expected to last through the week. Additional court dates will be scheduled for the judge to hear briefs in June and oral arguments in July.

Armstrong had not expected the timetable laid out at the beginning of Tuesday's hearing, said Riley.

Armstrong's modified plan is similar to a previously filed fourth amended plan of reorganization except that it eliminates the distribution of warrants to shareholders of Armstrong's parent company, Armstrong Holdings Inc.

The modification was made following a previous ruling that the issuance of warrants under the fourth-amended plan violated the "absolute priority rule" of the bankruptcy code, according to a February company press release.

Armstrong, a Lancaster, Pa.-based flooring company, filed for bankruptcy on Dec. 6, 2000. Its Chapter 11 case number is 00-04471.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.