Armstrong Names Buyers for Chinese & Australian Assets
Lancaster, PA, July 12, 2022-Armstrong Flooring announced that, in continuation of its ongoing Chapter 11 restructuring, the auction held as a part of its court-supervised sale process has concluded with the following bids deemed as the highest and best offers:
* Giant Group will acquire the equity interests in the company’s Hong Kong holding company subsidiary, including all associated operations, for $59 million; and
* Cowes Bay will acquire substantially all of the company’s Australian assets for $31 million plus assumption of specified liabilities. Cowes Bay is owned by the McKendrick family, which sold Godfrey Hirst to Mohawk.
Giant Group and Cowes Bay will operate the Chinese and Australian businesses, respectively. The Chinese and Australian businesses will continue to operate as usual pending consummation of the respective sales.
This announcement comes following the previous disclosure that a consortium of buyers consisting of AHF and Gordon Brothers will acquire Armstrong Flooring’s North American assets for $107 million plus assumption of specified liabilities.
The bankruptcy court will meet at 10:30 today to approve sales of these and the U.S. assets.
The proposed transactions are the outcome of a court-supervised auction that was held on June 27, 2022. Ultimately, the bids from Giant Group and Cowes Bay were deemed the highest and best offers for the international assets. The proposed transactions are subject to Bankruptcy Court approval, as well as regulatory approvals and customary closing conditions. They will be heard at a U.S. Bankruptcy Court hearing currently scheduled for July 12, 2022.
As previously disclosed, the company continues to work alongside its ABL lenders and they have agreed to allow the company to use the proceeds of the DIP financing and cash collateral, which will enable Armstrong Flooring to continue operating its business while they finalize all details and close the sale transactions.