Armstrong's Bankruptcy Court Hearing Pushed to 3 P.M. Today
Lancaster, PA, July 7, 2022-The buyer(s) of part or all of Armstrong Flooring Inc. is expected to be revealed this afternoon. Originally set for 11:30 a.m., the sale hearing has been moved to 3 p.m. A bankruptcy judge is also set to hear testimony from unions, retirees and creditors trying to stop or change terms of the sale, reports Lancaster Online.
Armstrong’s $24 million Debter in Possession (DIP) loan from Pathlight Capital and Bank of America N.A. must be paid back today. Company executives have said Armstrong does not have the money to make the payment - or to continue operating - without a sale of the company.
According to Lancaster Online, court proceedings on Monday revealed that at least two potential buyers are interested in purchasing all or some of the company to keep in business.
Delays for the sale of U.S. assets have been numerous. Seven groups have a voice in the decision, each with diverging interest: two banks, three unions, a retired employee committee and an unsecured creditors committee.
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