Armstrong files Plan of Reorganization in Chapter 11 case
The plan is supported by the asbestos personal injury claimants' committee, the representative for future asbestos personal injury claimants and the unsecured creditors' committee.
The plan will only become effective after a vote of various classes of creditors and with the approval of the Court.
Key elements of the plan include the creation of a trust for the benefit of present and future asbestos personal injury claimants; the distribution of new common shares and notes of the reorganized company; the assignment to the trust of certain rights to insurance coverage of the company; a mechanism to resolve asbestos property damage claims through insurance proceeds; a class of general unsecured claims of $10,000 or less which will be paid 75 percent of their allowed claims in cash; and cancellation of the existing common stock and the potential distribution to the stockholders of Armstrong Holdings, Inc.
"Armstrong entered into Chapter 11 to use the court-supervised process to resolve its liability for asbestos personal injury claims with finality," said Armstrong Chairman and CEO Michael D. Lockhart. "We believe that the plan we have filed will accomplish that objective while serving fairly and in proper balance the interests of all stakeholders."