Press Releases

06.09.09Masonite Completes Financial Restructuring and Emerges From Chapter 11 And CCAA Protection

Outstanding Capital Structure Will Support Long-Term Business Objectives

MISSISSAUGA, ON, June 9, 2009 – Masonite International Corporation (the "Company") today announced that it has successfully 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, only 85 days following its initial filings on March 16, 2009.

By working constructively with its lenders, who voted overwhelmingly in support of its restructuring plan, Masonite 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 of 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 (“ABL facility”) of up to $150 million.

“This restructuring process has made Masonite a financially healthier and stronger company better positioned for the future,” said 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.”

At respective court hearings regarding confirmation of the Plan of Reorganization Plan in the U.S. and the CBCA Plan in Canada, Judge Peter J. Walsh of the United States Bankruptcy Court and Justice Colin L. Campbell of the Ontario Superior Court of Justice each praised Masonite and its lenders for working cooperatively during the restructuring.

Judge Walsh said of Masonite’s restructuring: “In terms of deleveraging the balance sheet and in terms of the absence of any serious disputes and in terms of the vote, I haven’t seen one like this in ten years.”

Justice Campbell commented: “This case should be a model for cooperative cross-border restructurings."

Tony DiLucente, Chief Financial Officer of Masonite, said: “The successful financial restructuring, together with the closure of the ABL facility in the near future, provides Masonite with significant financial flexibility to meet our liquidity needs while simultaneously funding future growth opportunities. It is also important to note that Masonite will emerge from the financial restructuring process with significant cash reserves on hand.”

Lynch added: “At Masonite, we have many parties to thank for this successful outcome, including our employees, our advisors, our Board, our lenders, and everyone else who have remained steadfast in their support for the company. With the financial restructuring now behind us, we look forward to continuing to provide outstanding products and service to our loyal customers around the world.”

Masonite emerged from Chapter 11 and CCAA protection after meeting all closing conditions to the Company’s Plan of Reorganization (the “Plan”) in the U.S. and the Canadian corporate plan of arrangement (the “CBCA Plan”). The Plan of Reorganization was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on May 29. The Ontario Superior Court of Justice approved the CBCA Plan on June 1.

As previously announced, both Masonite’s term lenders and bond holders voted overwhelmingly in support of the Plans. Of the term lenders and bond holders who voted, 100% of the senior secured debt (US$1.4 billion, 161 term lenders) and 99.99% of the bondholders (US$665 million, 101 bondholders) voted to accept. The term lenders have converted 99% of their $2.2 billion in debt holdings into equity.

Masonite’s financial adviser was Perella Weinberg Partners. Its legal advisers were Kirkland & Ellis in the U.S. and Goodmans LLP in Canada. Its restructuring adviser was Alvarez & Marsal.

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.