Masonite disclosure statement OK'd; plan confirmation hearing May 29

By Jennifer Lanning Drey

Portland, Ore., April 17 - Masonite International Inc. obtained court approval of the disclosure statement for its plan of reorganization Friday from the U.S. Bankruptcy Court for the District of Delaware, according to attorneys.

The plan confirmation hearing is scheduled for May 29.

As previously reported, the company made a pre-packaged Chapter 11 bankruptcy filing that includes a debt restructuring plan to reduce outstanding debt by nearly $2 billion.

Treatment of creditors under the proposed plan of reorganization will include:

• Holders of administrative claims and priority claims will be paid in full in cash;

• Holders of senior secured claims will receive a share of a new term loan in the amount equal to the amount of the senior secured claim the holder elects to apply to the new term loan; to the extent the holder elects to apply for a new PIK loan, $1 in amount of new PIK loan for each $2 of new common stock the holder would have received of plan equity value, subject to reduction so the new PIK loan does not exceed the maximum allowed amount; and a share of 97.5% of new common stock;

• Other secured claims will either be reinstated or rendered unimpaired;

• Holders of senior subordinated notes claims will receive a share of 2.5% of the new common stock and 100% of new warrants to purchase 10% of new common stock;

• Holders of general unsecured claims will receive full payment in cash of the unpaid portion of their claims, provided that the company can request court approval to pay some of the general unsecured claims before the plan effective date;

• Intercompany claims will either be reinstated or cancelled with no distribution;

• Intercompany interests will be reinstated; and

• Holders of equity interests in Masonite Holding Corp. and section 510(b) claims will receive no distribution.

Masonite is a Mississauga, Ont.-based manufacturer of residential and commercial doors. Its Chapter 11 case number is 09-10844.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.