Armstrong Identifies Asbestos Liabilities as Weak Link, Files for Reorganization

WILMINGTON, Del. - With its asbestos liabilities growing exponentially, Armstrong World Industries, a major subsidiary of Armstrong Holdings, has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. In the Matter of Armstrong World Industries, No. 00-004471 (D. Del. Bankr.).

The company's announcement may have come as no surprise to financial analysts after Owens Corning made a similar maneuver only two months earlier, dragging down the stock values of other companies entangled in asbestos litigation.

Armstrong suffered a tumultuous ride after Owens Corning's Oct. 5 Chapter 11 filing, which caused Armstrong's major bank creditors to pull …