Masonite Emerges From Chapter 11

NEW YORK (Reuters) – Canadian doormaker Masonite International Inc said on Tuesday it had completed a financial restructuring allowing it to emerge from bankruptcy protection in both the United States and Canada.

The company had filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and the Companies’ Creditors Arrangement Act (CCAA) in Canada, on March 16.

Masonite, one of the world’s largest doormakers, had been trying to restructure its operations since 2005 when it was acquired by private-equity firm Kohlberg Kravis Roberts & Co., but had been slammed by the slide in the housing and construction markets.

Masonite said it plans to immediately pay off $11.3 million of term debt, leaving less than $2 million of debt on the balance sheet.

It also said it expects to shortly close on a revolving line of credit of up to $150 million.

“This restructuring process has made Masonite a financially healthier and stronger company better positioned for the future,” said Chief Executive Fred Lynch, in a statement. (Reporting by Lilla Zuill; Editing by Tim Dobbyn)