Mexichem Specialty Resins, Inc., filed a motion in the US Bankruptcy Court seeking the conversion of Armstrong Flooring, Inc.'s bankruptcy case from Chapter 11 reorganization to Chapter 7 liquidation on March 7, 2023. As per the motion filed, The Debtors sold substantially all of their assets, Mexichem provided the Materials to the Debtors during the Bankruptcy Cases, The Debtors failed to pay administrative expense claims as they came due in the ordinary course of business. The Debtors' no longer have exclusivity to file and solicit votes on a plan.

The Debtors have had negative cash flow for well over six months. The Debtors have already paid over $25 million dollars to estate professionals while failing to pay other administrative expense claimants.