Masonite meets obligations in forbearance agreement for automatic extension to Jan. 15

By Jennifer Lanning Drey

Portland, Ore., Dec. 23 - Masonite International Inc. has met its obligations in the forbearance agreement in place with its lenders, providing for an automatic extension of the agreement to Jan. 15, Masonite spokesman Michael Freitag said Tuesday in a statement.

As previously reported, Masonite amended its credit facility on Nov. 25 and extended its forbearance agreement so as to have more time to develop a revised business plan for 2009.

With the forbearance extension, lenders gave the company until Dec. 19, with the possibility to extend to Jan. 15 if Masonite delivered a draft business plan by Dec. 19, reviewed the plan with the bank group by Dec. 22, delivered a final business plan by Jan. 15 and complied with a number of other provisions related to the negotiation of a consensual restructuring.

The forbearance agreement applies to the non-compliance of covenants related to EBITDA metrics as of June 30 and Sept. 30.

The Bank of Nova Scotia is the administrative agent on the deal.

Masonite is a Mississauga, Ont.-based manufacturer of residential and commercial doors.

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