Masonite Receives Court Authorization to Meet ObligationsApril 21st, 2009 by Editor
Masonite International Inc. announced late last week that is implementing its “pre-negotiated” debt restructuring plan and is on track to complete its financial reorganization within the next few months. On April 14, the company received final court authorization to continue to meet its obligations to trade suppliers on normal terms in the ordinary course of business. The company also received final court authorization to continue to utilize its cash collateral to help meet its obligations to suppliers, employees and customers. This authorization was initially granted on an interim basis on March 17. (CLICK HERE for related story.)
“We are pleased that the U.S. court has granted these final orders, which allow us to continue to meet our obligations to our suppliers, customers and employees as we move forward with the restructuring process,” says Fred Lynch, president and chief executive officer of Masonite. “We are making good progress in executing our plan and remain on track to meet our goal of completing this process within the next few months. We appreciate the support we have seen from our suppliers and customers as we take steps to put Masonite in a financially stronger position for the future.”
Masonite also noted that the court has approved the continuation of customer programs, including its warranty programs, rebates and incentives, during the legal proceedings. Under final orders entered by the court, Masonite has the right to pay any such valid claims that are due in full.