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LANCASTER, Pa., May 17, 2022 (GLOBE NEWSWIRE) — Armstrong Flooring, Inc. (the “Company”) today announced that it has received approval from the United States Bankruptcy Court for the District of Delaware to access its consent debtor – Possession Financing (“DIP”) totaling $24 million in net new money. This financing will provide the Company with the necessary liquidity to continue its operations in the normal course of business while pursuing a rapid and value-maximizing sale process.
The DIP Financing consists of an asset-backed revolving credit facility and a term loan facility (collectively, the “DIP Facilities”). DIP facilities are provided by the Company’s pre-petition lenders, which include Bank of America, NA (“BANA”), other institutional lenders and affiliates of Pathlight Capital LP (“Pathlight”). BANA and Pathlight, respectively, will act as administrative agent and collateral agent under the DIP facilities.
At yesterday’s hearing, the company also received approval for its critical supplier petition, which allows the company to use $9 million of the $14 million requested. The remaining $5 million will be submitted for bankruptcy court approval on June 3, 2022. The $14 million of critical vendor funds are available for payment of certain vendor and service provider pre-application claims whose goods and services are truly essential to its operations and who generally do not have existing contracts to supply.
These approvals come after a pre-hearing in which the company received approval for other customary remedies to support normal course operations, including maintaining employee salaries and certain benefit programs. benefits, payment of certain pre-petition claims from shippers and storekeepers, and compliance with customer programs in the ordinary course. business course.
The Company continues to work closely with several interested bidders for some or all of its assets and is operating as usual throughout the sale process.
For more information on the Armstrong Flooring Chapter 11 case, please visit http://dm.epiq11.com/ArmstrongFlooring, email [email protected] or call (888) 905-0459 for US calls or +1 (503) 597-5611 for international calls.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in designing and manufacturing innovative flooring solutions that inspire beauty anywhere. Headquartered in Lancaster, Pennsylvania, Armstrong Flooring continually builds on its 150-year-old resilient heritage by fulfilling 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. To learn more, visit 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 phrases 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.
Source: Armstrong Flooring, Inc.