June 8, 2022
Armstrong Flooring, Inc., AFI Licensing LLC, Armstrong Flooring Latin America, Inc. and Armstrong Flooring Canada Ltd., leading US-based producers of resilient flooring products for use primarily in the construction and renovation of commercial, residential and institutional buildings, had their Chapter 11 proceedings recognized under the CCAA on June 8. For the 12-month period ended December 31, 2021, the companies have incurred net losses of US$35.7 million and has an accumulated deficit of US$349.1 million, with further losses of US$25 million incurred from January through April 2022. 26. The companies' small cash balance impugns their ability to cover short-term financial obligations as they come due; however, barring significant impairment to its inventories and property, plant, and equipment, the companies' assets as represented in its financial statements should be sufficient to enable payment of all its liabilities. Grant Thornton was appointed as Information Officer in the Canadian proceedings. Canadian counsel for Armstrong Flooring Inc. is BLG, and counsel for the Information Officer is Lax O’Sullivan Lisus Gottlieb.
By Dina Milivojevic