Press Releases

1.16.09Masonite International Inc. Enters into Further Extension of Forbearance Agreement with Bank Lenders

 

MISSISSAUGA, ON, January 16, 2009 – Masonite International Inc. (the “Company”) today announced that it has entered into a further extension, to January 30, 2009, of the forbearance agreement dated September 16, 2008, with its bank lenders.

As previously announced, as a result of its financial performance for the quarters ended June 30, and September 30, 2008, Masonite was not in compliance as of such dates with certain financial covenants contained in its credit facility, which constituted an event of default under the credit facility. The financial covenants relate to EBITDA metrics and reflect the challenging conditions in the U.S. housing industry. Masonite is engaged in ongoing negotiations with lenders that are party to the credit facility regarding a potential amendment to the terms of the credit facility. There is no assurance that the negotiations with lenders will result in an amendment acceptable to Masonite and to its lenders.

For a copy of the extended forbearance agreement, please see Masonite International Inc.'s report on Form 6-K dated January 16, 2009 filed with the Securities and Exchange Commission and available at www.sec.gov.

As previously announced, Masonite has also entered into a separate forbearance agreement with holders of a majority of the senior subordinated notes due 2015 issued by two of the Company’s subsidiaries (the “Bondholder Forbearance Agreement”). That forbearance agreement is effective through January 31, 2009. For a copy of the Bondholder Forbearance Agreement, please see Masonite International Inc.'s report on Form 6-K dated December 31, 2008 filed with the Securities and Exchange Commission and available at www.sec.gov.

This press release and Form 6-K is also available within the "News & Events" section of the Company's website at www.masonite.com.

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.