EXHIBIT 99
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FOR IMMEDIATE RELEASE Contact: Stan Steinreich
December 6, 2000 -------- V.P. of Corporate Relations
(717) 396-2169
Tom Waters
Director of Investor Relations
(717) 396-2216
ARMSTRONG FILES FOR VOLUNTARY CHAPTER 11 PROTECTION
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IN MOVE TO RESOLVE ASBESTOS LIABILITY
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LANCASTER, PA -- Armstrong Holdings, Inc. (NYSE:ACK) today said its major
operating subsidiary, Armstrong World Industries Inc., filed for voluntary
reorganization under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, DE in
order to resolve its asbestos liability. Armstrong Holdings, Triangle Pacific
Corp., WAVE (Armstrong's ceiling grid systems joint venture with Worthington
Industries), Armstrong Canada, Armstrong DLW AG and its other non-U.S. operating
subsidiaries were not a part of the filing.
The company said that all its businesses are operating as usual and that it
is maintaining its high standards of customer service. Suppliers will be paid on
normal terms for goods delivered and services provided after the Chapter 11
filing. Employee pay and normal benefit programs will not be interrupted. Normal
retiree and health benefits will also not be interrupted. Armstrong's pension
plan is fully funded and qualified pension benefits are protected by law.
To enhance its liquidity, Armstrong said it had obtained a commitment for a
$400 million debtor-in-possession facility with Chase Manhattan Bank, which will
be submitted to the court for approval today.
Like other companies involved in asbestos litigation, Armstrong has tried a
number of different approaches to manage its asbestos liability, including
negotiating broad-based solutions and supporting efforts to find a legislative
resolution. Despite these efforts, the number of cases filed and the cost to
settle cases have continued to increase. The company said that the cash demands
of asbestos settlements now "threaten the long-term health of its valuable and
fundamentally sound businesses." In addition, the company said that liquidity
concerns about Armstrong raised after the Owens Corning Chapter 11 filing, had
begun to have an adverse impact in the marketplace.
"Our historical approach to resolving asbestos claims has not worked. The
actions that would now be required to wait for legislation --for which there is
no reasonable hope for quick passage-- would reduce our ability to invest in our
businesses," said Chairman and CEO Michael D. Lockhart. "Armstrong comprises
profitable, industry leading businesses. We can no longer allow the asbestos
uncertainty to eat away at these businesses, nor can we cutback on investment
without damaging them. Given this, filing for protection under Chapter 11 was
the best option we had.
"Triangle Pacific, WAVE and our non-U.S. businesses are not included in the
filing. Their customers, employees and suppliers will be unaffected by the
filing," he added.
Armstrong said that while operating in Chapter 11, it would have the
resources it needs to continue to invest in its businesses and its customers
growth programs. At the same time, Chapter 11 will give the company the
opportunity to use the court-supervised reorganization process to achieve a
binding, legal resolution to the asbestos situation and put this difficult issue
behind it. This will enable Armstrong to emerge from Chapter 11 stronger and
better positioned than it is today.
Also filing for relief were two of Armstrong World Industries wholly-owned
subsidiaries, Nitram Liquidators, Inc. and Desseaux Corporation of North
America, Inc.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements
provide our expectations or forecasts of future events. Actual results could
differ materially as a result of known and unknown risks and uncertainties and
other factors, including: our ability to secure sufficient additional financial
flexibility and liquidity; our asbestos related and any other litigation;
further downgrades in our credit rating; greater than expected working capital
requirements; variations in raw material and energy costs, and our success in
achieving manufacturing efficiencies and price increases; our success in
introducing new products; product and price competition caused by factors such
as worldwide excess industry capacity; interest, foreign exchange and effective
tax rates; integration of our acquisitions; business combinations among
competitors and suppliers; the strength of domestic and foreign end-use markets
and improved efficiencies in the European flooring market; impacts to
international operations caused by changes in intellectual property protection
and trade regulations, and the political climate in emerging markets; and other
risks, uncertainties and factors disclosed in the most recent report on Form
10-K and reports on Form 10-Q and Form 8-K of Armstrong Holdings and Armstrong
World filed with the Securities and Exchange Commission. We undertake no
obligation to update any forward-looking statement.
Armstrong Holdings, Inc. is a global leader in the design, innovation and
manufacture of floors and ceilings. Based in Lancaster, PA, Armstrong has
approximately 18,000 employees worldwide. In 1999, Armstrong's net sales totaled
more than $3.4 billion. Additional information about the company and its Chapter
11 filing can be found on the Internet at www.armstrong.com or by calling
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866-321-6677.