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Masonite plan approved by Canadian court; exit seen in a few weeks
By Caroline Salls
Pittsburgh, June 1 - Masonite International Inc.'s Canadian corporate plan of arrangement has been approved by the Ontario Superior Court of Justice, which also issued an order recognizing and implementing the confirmation of the company's Chapter 11 plan of reorganization in Canada, according to a company news release.
As previously reported, the Chapter 11 plan was confirmed on Friday by the U.S. Bankruptcy Court for the District of Delaware.
Now that both plans have been approved, Masonite said it expects to emerge from bankruptcy and Companies' Creditors Arrangement Act protection within the next few weeks.
"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," president and chief executive officer Fred Lynch said in the release.
"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."
The company said its term lenders chose to convert 99% of their holdings to equity, which means that Masonite will emerge with less than $11.3 million of long-term debt on its balance sheet.
In addition, the company said it had more than $163 million in cash on hand at the end of the first quarter of 2009 and expects to close on an up to $150 million asset-backed revolving line of credit shortly after emergence.
Masonite, a Mississauga, Ont.-based manufacturer of residential and commercial doors, filed for bankruptcy on March 16. Its Chapter 11 case number is 09-10844.
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