Armstrong reduces amount of its debtor-in-possession credit facility

LANCASTER, Pa. -- Armstrong World Industries Inc. -- the chief operating subsidiary of Armstrong Holdings Inc., which filed for Chapter 11 reorganization last December -- has reduced the amount of its post-filing "debtor-in-possession" credit facility to $200 million from $300 million. The credit facility is provided by The Chase Manhattan Bank.

"As we move through the reorganization process, we are becoming increasingly confident of our ability to fund our businesses with cash generated from operations -- particularly in light of the fact that, company-wide, we had built up cash on hand from our operations in excess of $150 million as of April 30,” said Leonard Campanaro, Armstrong's senior vice president and CFO. “We have not needed to use the credit facility in the first six months of our Chapter 11 case, which is the period when we expected we might have the greatest potential need.”