LANCASTER, Pa., Nov. 22 /PRNewswire/ -- Armstrong Holdings, Inc. said that its wholly-owned subsidiary, Armstrong World Industries, Inc., had failed to repay $50 million in commercial paper that came due today. The failure to make payment of the commercial paper constitutes an event of default under a long-term $450 million credit facility that expires in October 2003 and certain other financial agreements.

``On Nov. 14 we filed a Form 10-Q report with the Securities and Exchange Commission that explained the liquidity issues facing Armstrong and the options available to it. Our business continues to operate without interruption,'' said Senior Vice President and Chief Financial Officer E. Follin Smith.