In a move to help solidify Armstrong’s emergence from bankruptcy last year, the flooring maker’s former parent Armstrong Holdings Inc. said it would dissolve and return all assets, about $27 million in cash, to shareholders. As outlined in Armstrong’s final plan of reorganization approved last year, Armstrong Holdings ceased its ownership after approval of the plan and was expected to dissolve and distribute its remaining assets to shareholders. Armstrong noted that with 40.5 million shares outstanding, shareholders would likely receive about 66 cents per share.
sought bankruptcy protection more than six years ago as a result of litigation
stemming from asbestos formerly used in the flooring. As part of its
reorganization plan, Armstrong said it would establish a trust fund for all current
and future asbestos claimants, valued at approximately $1.8 billion.
ending its ownership, Armstrong Holdings has no operations or employees. As
detailed in the reorganization plan, Armstrong said it will pay the dissolution
expenses for the defunct company.
Armstrong said that
shareholders can vote on the plan by mail, online or at a meeting scheduled for
11 a.m. July 18 at Reed Smith LLP, 435 Sixth Ave., in Pittsburgh.