Tag: Bankruptcy

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.

United States – Global product company Tupperware Brands has officially filed bankruptcy in the United States through a voluntary initiative of Chapter 11 proceedings in the United States. Said proceedings were filed in the United States Bankruptcy Court for the District of Delaware.

According to the brand, they will seek court approval to continue operating during the proceedings and remains focused on providing its customers with its products through Tupperware sales consultants, retail partners and online. 

Moreover, the brand will also seek court approval to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware’s transformation into a digital-first, technology-led company.

Laurie Ann Goldman, president and chief executive officer at Tupperware, said, “Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family. We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”

It is worth noting that following Tupperware’s appointment of a new management team last year, they have implemented a strategic plan to modernise its operations, bolster omnichannel capabilities and drive efficiencies to ignite growth. Moreover, it has made significant progress and intends to continue this important transformation work.

Goldman added, “Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders.”

Tupperware Brands Corporation was founded in 1946 by Earl Tupper, an American chemist and inventor. The company originated with Tupper’s invention of airtight, lightweight plastic containers designed to store food while keeping it fresh. Tupper initially struggled to sell his innovative products through traditional retail channels, as consumers were unfamiliar with the concept of plastic food storage. 

Singapore – Following its declaration of bankruptcy earlier this year, VICE Media Group is set to be acquired by three investment companies for US$350m. The companies set to acquire the digital media group include Fortress Investment Group, Soros Fund Management and Monroe Capital.

The acquisition has been approved by the U.S. Bankruptcy Court for the Southern District of New York, with the total purchase to be in the form of a credit bid for substantially all of the company’s assets, in addition to the assumption of significant liabilities upon closing. Some of these assets include its main news arm VICE News, entertainment website Refinery29, creative agency VIRTUE, film production house Pulse Films as well as its VICE Studios and VICE Distribution subsidiaries.

Bruce Dixon and Hozefa Lokhandwala, VICE’s Co-Chief Executive Officers, said, “Following a robust court-supervised process, we are pleased to receive Court approval for this transaction, which we believe represents the best path forward for VICE. The relationships we have built with our audience, creators, distribution partners, brand and agency constituents are foundational to VICE, and we look forward to strengthening those relationships as we continue to deliver the award-winning storytelling and journalism that VICE is known for.”

Meanwhile, Brian Stewart, managing director at Fortress Investment Group, commented, “VICE produces incredibly compelling and distinctive content that reaches global audiences every single day. As VICE moves into its next chapter, we look forward to working closely with the Company’s leadership team to execute on its strategy. We have confidence in the management team and believe that the Company is now well-positioned to build on its strong legacy to create significant value for all its stakeholders.”

VICE Media Group applied for Chapter 11 bankruptcy in May this year, causing a wave of global layoffs across its team, which included axing the entire VICE World News‘ APAC newsroom team. It also follows a recent wave of media-related layoffs globally, including from BuzzFeed News, sports news network ESPN, business media company Insider, and mass media group Vox Media.