Ruling Leaves Armstrong Still 'Paralyzed'
When a federal judge last week rejected its plan for reorganizing and emerging from bankruptcy, the company was left with a variety of challenges.
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Twice during its four-year bankruptcy, Armstrong has responded by winning bankruptcy court approval of expensive bonus programs for management.
Most recently, Armstrong won court approval to pay $9 million in bonuses to 130 top managers if they stay with the company through 2005.
Bankruptcy has been a sizable financial drain on Armstrong in another way.
It’s paying about $1 million to $2 million a month in professional fees to more than a score of law and financial advisory firms, according to Armstrong’s quarterly earnings reports.
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posted by Mike Graham at 8:02 PM
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