Armstrong Looks To Refinance

Lancaster, PA, Oct. 8—Armstrong World Industries has filed papers with the court handling its almost two year old Chapter 11 case to amend its debtor in possession credit facility so that it can be used only for letters of credit. The lenders, led by J.P. Morgan Chase Bank, would no longer be obligated to make loans or advances. As of the end of the second quarter, Armstrong had more than $345 million in excess cash. Under terms of the amendment, the loan amount would be reduced to $75 million from $200 million. In addition, the maturity date would be extended to December 8 of next year. The U.S. Bankruptcy Court in Wilmington, Deleware, is scheduled to consider the request November 1. Armstrong—one of several large companies to seek Chapter 11 protection to deal with asbestos liabilities—said it has more than enough cash to fund ongoing operations and no longer needs access to a credit facility except to get letters of credit it must post in the ordinary course of business.