Armstrong Flooring Files Voluntary Chapter 11 Petitions; Continue to pursue the sale of the business through the Chapter 11 process
The company will continue to fulfill orders and commitments to stakeholders, providing the highest levels of innovation, quality and service
LANCASTER, Pa., May 09, 2022 (GLOBE NEWSWIRE) — Armstrong Flooring, Inc. (NYSE: AFI), a leader in the design and manufacture of innovative flooring solutions (“Armstrong Flooring” or “the Company”) , announcing today announced that the Company and certain of its subsidiaries have filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. As an extension of its ongoing sale process, the Company intends to pursue an effective and value-maximizing sale of its business through a competitive Chapter 11 sale process. in China and Australia will not be included in the Chapter 11 filing, but they are part of the sales process.
In December 2021, Armstrong Flooring retained the services of Houlihan Lokey Capital Inc. to assist in a process to sell the company as well as review other strategic alternatives. The sale process continues and Armstrong Flooring hopes to complete an orderly sale of the entire business or its major assets as soon as possible.
“Our company and our team members have worked diligently to strengthen our financial footing in the face of several macroeconomic trends, including supply chain challenges, the current inflationary environment and the continued headwinds of the COVID-19 pandemic. 19,” said Michel Vermette, President and Chef. Executive Officer. “With the support of our Board of Directors, we have determined that using the Chapter 11 process to effect a potential sale is the right next step for our company. As we have said previously, we strongly believe in the value and potential of Armstrong Flooring and are confident that this final action places us in the best possible position to preserve and maximize value for our stakeholders. In the meantime, we are open for business and remain firmly committed to our customers, suppliers and employees as we navigate the path forward. »
In order to fund and preserve its operations during the Chapter 11 process, the company entered into a credit agreement, subject to bankruptcy court approval, providing for $30 million in debtor-in-possession financing ( “DIP”). Once approved by the bankruptcy court, the DIP financing will provide Armstrong Flooring with the cash needed to operate and cover administrative expenses as it pursues a value-maximizing sale.
The company will file certain petitions in bankruptcy court seeking customary relief that will allow Armstrong Flooring to move into Chapter 11 with the least disruption to its day-to-day operations, including support for employee salary payments and certain programs. benefits. The Company expects these motions to be approved within the first few days of the case.
For more information on the Armstrong Flooring Chapter 11 case, please visit http://dm.epiq11.com/ArmstrongFlooringE-mail [email protected] or call (888) 905-0459 for US calls or +1 (503) 597-5611 for international calls.
The Company is represented in this matter by Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel, Houlihan Lokey Capital Inc. as investment banker and Riveron RTS, LLC as financial counsel.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: IFA) is a global leader in the design and manufacture of innovative flooring solutions that inspire beauty wherever you are. Based in Lancaster, Pennsylvania, Armstrong Flooring continually builds on its 150-year-old resilient heritage as it fulfills its mission to create a stronger future for its customers through adaptive and inventive solutions. The company safely and responsibly operates seven manufacturing facilities around the world, striving to provide the highest levels of service, quality and innovation to ensure it remains as strong and vital as its legacy of 150 years. Learn more about www.armstrongflooring.com.
Forward-Looking Statements and Cautions
The information in this release and in our other public materials and comments contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “envision”, “target”, “predict”, “may” , “will”, “would”, “could”, “should”, “seek” and other words or expressions of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements, by their nature, deal with uncertain matters and involve risks because they relate to events and depend on circumstances that may or may not occur in the future.As a result, our actual results may differ materially from our expected results and those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in our reports filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update forward-looking statements beyond what is required under applicable securities laws.