Armstrong Flooring Inc. informed buyers this morning it is likely to file for personal bankruptcy following it unsuccessful to obtain a consumer for the East Lampeter Township-headquartered company.
Armstrong Flooring faced a deadline today to enter into a definitive binding order arrangement, merger arrangement or other related settlement.
Armstrong employs about 500 locally.
The organization mentioned there are interested potential buyers but it was not in a position to entire a deal. It now has a Might 8 deadline.
Armstrong Flooring said “at this time it seems not likely that any of the parties expressing fascination in a transaction with the Company would be in a situation to signal a definitive binding order agreement, merger arrangement or other equivalent settlement on or prior to the Extended Definitive Arrangement Milestone.”
It is not very clear no matter whether loan companies would concur to even further extensions, Armstrong Flooring claimed in its submitting with the Securities and Exchange Commission.
Armstrong reported no definitive final decision has been manufactured and no class of action has been approved by its board of directors but based mostly on the on the state of discussions with the company’s loan companies and the liquidity requirements of the corporation, it is probable that the enterprise will find individual bankruptcy defense underneath Chapter 11 and will find to apply one or more these transactions via a competitive sale approach in bankruptcy.
The federal Protection and Trade Fee briefly halted investing on Armstrong Flooring inventory at 8 a.m.