Armstrong Gets 8th Extension from Bankruptcy Court

Lancaster, PA, Sep. 21--A bankruptcy court judge agreed to make sure that Armstrong's bankruptcy reorganization plan will remain the only proposal on the table for at least six more months, according to the Lancaster New Era. Armstrong had sought this eighth extension of the so-called "exclusive period" as its plan goes before a district court judge for final approval. This latest extension lengthens the "exclusive period" to April 4, 2005. The bankruptcy court judge, Judith K. Fitzgerald, also approved a settlement between Armstrong and its Web site developer, ending a three-year pay dispute. Proxicom Inc., of Reston, Va., will receive about $654,000 more, on top of the $2.3 million already received from Armstrong. Proxicom had claimed it deserved $2.5 million more. Armstrong, alleging Proxicom had breached its contract, had contended any extra payment was unwarranted. Fitzgerald's rulings were filed Friday. Lancaster-based Armstrong, a maker of floors, ceilings and cabinets, filed for bankruptcy in December 2000 to resolve the nearly 200,000 outstanding asbestos personal-injury claims filed against it. Final approval of its reorganization plan -- the blueprint for paying the asbestos claimants and other creditors -- has been on hold for nearly a year. The delay came because the district judge handling the Armstrong case saw his impartiality questioned in another large asbestos bankruptcy, the Owens-Corning case. The judge eventually was taken off the O-C case and resigned.