Masonite Emerges from Chapter 11

June 10th, 2009 by Editor

Masonite International Corp. has completed its financial restructuring and emerged from protection under both Chapter 11 of the U.S. Bankruptcy Code and the Companies’ Creditors Arrangement Act (CCAA) in Canada. The company filed for reorganization on March 16.

Masonite officials say the company reduced its debt from $2.2 billion in March to $11.3 million of term debt and less than $2 million of other debt at foreign subsidiaries at emergence. Immediately upon emergence, Masonite will pay off the $11.3 million in term debt, leaving less than $2 million of debt on the balance sheet with cash-on-hand of over $140 million. In addition, the company expects to close shortly on an asset-backed, revolving line of credit facility of up to $150 million.

“This restructuring process has made Masonite a financially healthier and stronger company better positioned for the future,” says Fred Lynch, president and chief executive officer of Masonite. “We achieved our goal to successfully complete our debt restructuring plan and emerge from Chapter 11 and CCAA within 120 days of filing in no small part because of the extraordinarily constructive work we undertook with our lenders to develop an outstanding capital structure to support our long-term business objectives.”

CLICK HERE for full text of statement from Masonite.

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