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February 25, 2005
Armstrong Bankruptcy Plan Denied
Armstrong World Industries filed for bankruptcy protection in 2000 as a result of a settlement of its asbestos personal injury suits. The company thought it had a viable workout plan in 2002, but it was denied reorganization plan approval again this week.
A federal bankruptcy judge Wednesday refused to confirm a reorganization plan filed by Armstrong World Industries.
In denying the Lancaster-based company's plan, Judge Eduardo C. Robreno said it violates a portion of bankruptcy law.
"Bluntly put, no amount of legal creativity or counsel's incantation to general notions of equity or to any supposed policy favoring reorganizations over liquidation supports judicial rewriting of the Bankruptcy Code," the judge wrote. "The plan, therefore, cannot be confirmed."
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Posted on February 25, 2005 01:31 AM by Asbest21.
Filed in Personal Injury Resources under asbestos and mesothelioma.
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