Press Releases

04.16.09Masonite Receives Final Court Authorization to Continue to Meet Obligations to Suppliers, Customers and Employees

Company Remains On Track To Complete Financial Restructuring Within A Few Months

MISSISSAUGA, ON, April 16, 2009 – Masonite International Inc. (the "Company") today reported that it continues to make good progress in implementing its "pre-negotiated" debt restructuring plan and is on track to complete its financial reorganization within the next few months. On April 14, the Company received final court authorization to continue to meet its obligations to trade suppliers on normal terms in the ordinary course of business. The Company also received final court authorization to continue to utilize its cash collateral to help meet its obligations to suppliers, employees and customers. This authorization was initially granted on an interim basis on March 17.

"We are pleased that the U.S. court has granted these final orders, which allow us to continue to meet our obligations to our suppliers, customers and employees as we move forward with the restructuring process," said Fred Lynch, President and Chief Executive Officer of Masonite. "We are making good progress in executing our plan and remain on track to meet our goal of completing this process within the next few months. We appreciate the support we have seen from our suppliers and customers as we take steps to put Masonite in a financially stronger position for the future."

Masonite also noted that the Court has approved the continuation of customer programs, including its warranty programs, rebates, and incentives, during the legal proceedings. Under final orders entered by the Court, the Company has the right to pay in full any such valid claims that are due.

As previously announced, Masonite is implementing a debt restructuring plan that has already received strong support from the Company's secured lenders and bondholders. If implemented as proposed, this plan will enable Masonite to reduce its outstanding debt by nearly $2 billion, from $2.2 billion today to up to $300 million upon consummation of the plan, and reduce its annual cash interest costs by approximately $145 million. Under the restructuring plan, Masonite’s trade creditors will be "unimpaired" and paid in full.

In order to implement this restructuring plan, on March 16, 2009, the Company and several affiliated companies, including Masonite International Corporation, voluntarily filed to reorganize under the Companies' Creditors Arrangement Act (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. Masonite's subsidiaries and affiliates outside of North America have not initiated reorganization cases and are not expected to be adversely impacted by the legal proceedings. Earlier today the Canadian court granted an order extending the CCAA stay of proceedings to June 12, 2009.

A hearing at which Masonite will seek approval from the U.S. court for its Disclosure Statement has been scheduled for Friday, April 17. A hearing before the Canadian court for companion relief has been scheduled for Monday, April 20. If it receives such court approval, Masonite will then begin the process of formally soliciting acceptances for its plan of reorganization from the requisite creditor groups. As previously announced, the Company has already entered into lock-up agreements supporting the restructuring plan with holders of more than 75 percent in principal amount of its senior secured obligations and more than 80 percent in principal amount of its senior subordinated notes due 2015. The minimum threshold required for acceptance by a class of creditors of the proposed plan of reorganization is 66 2/3 percent in value of claims of creditors who vote and more than 50 percent in number of creditors who vote.

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.