Armstrong announces a significant step toward approving its plan of reorganization
At a hearing on the company's POR that concluded Tuesday, the Hon. Randall J. Newsome, U.S. Bankruptcy Court Judge, announced proposed findings of fact and conclusions of law that would dismiss all remaining objections and approve the POR. However, confirmation of the POR now requires action by the U.S. District Court on the Bankruptcy Court's recommendations. The timing of that is uncertain. Armstrong hopes to be able to consummate the POR and emerge from Chapter 11 in early 2004.
As previously announced, the POR would result in the cancellation of existing stock of the company, with new stock and other considerations issued to its creditors and certain warrants to buy new stock issued to Armstrong Holdings Inc.
Armstrong Holdings Inc. has scheduled a special meeting of its shareholders for Dec. 3 to vote on a proposal for its dissolution. The dissolution of Armstrong Holdings Inc. is conditional upon the company's reorganization under Chapter 11 and, if shareholders at the meeting approve dissolution, it will not be given effect until the company's Chapter 11 plan is confirmed and consummated.