Ontario Superior Court of Justice Recognizes U.S. Bankruptcy Court`s Confirmation of Masonite`s Plan of Reorganization and Approves Masonite`s Canadian Plan of Arrangement
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--Company Expects to Emerge from Bankruptcy within Next Few Weeks-- MISSISSAUGA, Ontario--(Business Wire)-- Masonite International Inc. (the "Company") todayannounced that the Ontario Superior Court of Justice issued an order recognizing and implementing in Canada the May 29, 2009 confirmation by the U.S. Bankruptcy Court in Wilmington, Delaware of the Company`s Plan of Reorganization and approving the Canadian corporate plan of arrangement (the "CBCA Plan"). Masonite expects to emerge from Chapter 11 of the U.S. Bankruptcy Code and Companies' Creditors Arrangement Act (CCAA) protection in Canada within the next few weeks. The Company previously announced that both Masonite`s term lenders and bondholders voted overwhelmingly in support of the Plan and the CBCA Plan, with 100% of the senior secured debt (US$1.4 billion, 161 term lenders) and 99.99% of the bondholders (US$665 million, 101 bondholders) of those voting on the Plan and the CBCA Plan voting to accept them. In a show of further support for the Company`s Plan and CBCA Plan, the term lenders chose to convert 99% of their holdings to equity, which means that Masonite will emerge from this process with less than approximately US$11.3 million of long-term debt on its balance sheet. Masonite also reported that it had more than US$163 million in cash-on-hand at the end of the first quarter of 2009 and expects to close on an Asset-Backed, Revolving Line of Credit facility of up to US$150 million shortly after emergence. As previously announced, Masonite`s Plan and CBCA Plan will become effective - and the Company will exit bankruptcy protection - as soon as all closing conditions to the Plan and the CBCA Plan have been met. "These orders by the Ontario Superior Court of Justice and the U.S. Bankruptcy Court mark the final stages of Masonite`s restructuring, and we should expect to emerge from Chapter 11 and CCAA protection in just a few weeks," said Fred Lynch, President and Chief Executive Officer of Masonite. "As a result of this restructuring and the continued focus on our strategy, Masonite will emerge from this process a stronger, more competitive, more capable company. We want to thank our agent, The Bank of Nova Scotia, and our creditors for their strong endorsement of our Plan of Reorganization, which we believe will provide us with the financial flexibility to not only weather this downturn, but to also take advantage of new growth opportunities as the markets rebound. That`s good for the Company, our employees, customers and all of our business partners." On March 16, 2009, the Company and several affiliated companies, including Masonite International Corporation, voluntarily filed to reorganize under the CCAA in Canada in the Ontario Superior Court of Justice. In addition, Masonite International Corporation, Masonite Corporation and all of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware. This press release is available on the Company's website at www.masonite.com, along with additional information on the restructuring. Suppliers and vendors may also call (888) 830-4646 or send an email to MasoniteInfo@kccllc.com. About Masonite Masonite International is a leading global manufacturer of residential and commercial doors, committed to providing the highest value door products to our customers in more than 70 countries around the world. Forward-looking Statements This press release and other written reports and oral statements made by the Company may include forward-looking statements, all of which are subject to risks and uncertainties. One can identify these forward-looking statements by their use of words such as "will", "may", "might", "expects", "plans", "would", "estimates", "intends", "forecasts", "projects" and other words of similar meaning, or by the fact that they do not relate strictly to historical or current facts. These statements are likely to address, but may not be limited to, and are subject to factors such as the Company's strategies relating to growth and cost containment, including facility closures, the Company's negotiations with lenders under its senior secured credit agreement, actions that may be taken by its noteholders, the uncertainties and delays associated with court proceedings, the Company's future operations; the Company's ability to get support for its restructuring plan, and ongoing conditions in the door manufacturing and housing industries. Readers must carefully consider any such statements and should understand that many factors could cause actual results and developments to differ materially from the Company's forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other known and unknown risks and uncertainties, including: general economic, market and business conditions; levels of construction and renovation activity; competition; financing risks; ability to manage expanding operations; commitments; new services; retention of key management personnel; environmental and other government regulation; and other factors disclosed by the Company in its filings from time to time with the United States Securities and Exchange Commission. No forward-looking statement can be guaranteed and actual future results may vary materially. Therefore, we caution you not to place undue reliance on our forward-looking statements. The Company disclaims any responsibility to update these forward-looking statements, whether as a result of new information, future events or otherwise. Masonite International Inc. Tony DiLucente, 813-739-3000 corporaterelations@masonite.com or Kekst and Company Michael Freitag/Wendi Kopsick, 212-521-4800 Copyright Business Wire 2009
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