United States – Del Monte Foods in the United States has filed for Chapter 11 bankruptcy protection as part of a plan to restructure its balance sheet and pursue a sale of its business.
The company and some of its affiliates commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of New Jersey. The filing is intended to enable a court-supervised sale process aimed at securing the highest or best offer for all or substantially all of its assets.
Del Monte Foods said it has reached a restructuring support agreement (RSA) with a group of lenders holding some of its term loan debt. Under the RSA, the lenders have agreed to support a going-concern sale process that aims to maximize value for stakeholders.
“This is a strategic step forward for Del Monte Foods,” said president and CEO Greg Longstreet in a statement. “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”
To maintain operations through the process, the company has secured US$912.5 million in debtor-in-possession (DIP) financing from certain existing lenders, pending court approval. That amount includes US$165 million in new funding and is expected to provide sufficient liquidity to support day-to-day operations, including the ongoing pack season.
While acknowledging recent challenges “intensified by a dynamic macroeconomic environment,” Longstreet emphasized the company’s long history of providing nutritious food and thanked employees, growers, customers, vendors, and lenders for their support.
Del Monte Foods has also filed customary first-day motions seeking court approval to continue operations without disruption. The company said its non-US subsidiaries are not included in the Chapter 11 proceedings and will continue to operate normally.
Following this news, Del Monte Pacific disclosed it no longer has control over the US subsidiary following a lender dispute earlier this year.
In a stock exchange filing at PSEi, DMPL noted that in May 2025 its board decided not to provide a monetary contribution requested by Del Monte Foods Holding Limited’s (DMFHL) New Term Facility lenders to settle litigation. That decision allowed the lenders to appoint a majority of directors to the boards of DMFHL and its subsidiaries, resulting in the transfer of 25% of DMPL’s equity in DMFHL to the lender group.
Under International Financial Reporting Standards, DMPL will be required to deconsolidate the US business from its financial statements, recognizing any retained interest at fair value and recording a gain or loss on the loss of control. The company said it is still assessing the full financial impact of that deconsolidation, but noted its net investment value in DMFHL was US$579 million as of 31 January 2025, with additional net receivables of US$169 million. The value to be impaired will be determined following the group’s audit.
Despite the challenges in its US operations, DMPL highlighted that its Asian and international subsidiary, Del Monte Philippines Inc. (DMPI), continues to perform well thanks to resilient consumer demand and a stable supply chain. The company said it remains confident in its ability to maintain uninterrupted operations in those markets.
DMPL also reminded investors to exercise caution in trading its shares, given ongoing uncertainties, and pledged to make further announcements as required under listing rules in Singapore and the Philippines.
