KKR's Nuttall Resigns From Masonite Board Amid Debt Negotiation

Kohlberg, Kravis, Roberts & Co. Partner Scott Nuttall resigned from the board of embattled Masonite International Corp., a door maker the private-equity firm bought for $1.9 billion three years ago, Bloomberg reported today. Masonite, which is in talks with lenders to avert bankruptcy, announced the departure in a statement yesterday. Fred Lynch, the chief executive officer of the Mississauga, Ontario-based company, will replace Nuttall on the board, according to the statement. New York-based KKR said Nov. 3 that the value of its equity investment, estimated at $650 million in 2005, had shrunk to zero. Masonite creditors have expressed concern that KKR's dual roles may lead to conflicts if the manufacturer's owners and lenders are pitted against each other, people familiar with the matter said Oct. 14. “Private-equity firms don't want to be seen as wearing too many hats if one of their companies goes into bankruptcy,” said John Bicks, a bankruptcy attorney at Sonnenschein Nath & Rosenthal LLP in New York. “What causes a problem is if you are an owner, lender and director.” Read more.